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> For instance the key innovation of the iPod was not the clickwheel, but the iTunes ecosystem. Even though iTunes store didn't come out until later, it was the purpose behind the iPod.

Keep in mind Apple didn't make that much money on iTunes, at least in the early days. But yes, generally they could foresee that making music part of your computer's function is a ripe idea for a computer company in the early 2000s: music is easily digitizable, and comes before TV shows and movies in a long line of digital transition.

Mostly though, I just think simple, single-purpose devices were in the capability sweet spot for Apple at the time. Other companies couldn't provide the assurance that ripping all your CDs to your computer would be worth it in the long run.

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