I remember showing my black and white iPod to some people in Japan in 2005 and they had never seen one before. However, if you looked in the shops you could find 100s of better spec'ed MP3 players, much better than the ones in the U.K. at the time and much cheaper. I guess the iPod just looked like a over priced fashion accessory to them.
Then looking at some of the phones people had in 2005 when I was there, people were able to do all sorts of things, like look up train times with complete ease. At the time was very difficult on European phones.
The author of the article seems to think that it's progress to plug your MP3 player or phone into a computer, but it's not. For example look at iTunes, I can only put music on from one machine and can't get it off again (using iTunes at least), it's needlessly tied to a single machine, when I don't want it tied to any machine. Also people don't want to plug their digital camera into a computer to upload pictures, they just want to send them straight to the internet from their phone, the Japanese were doing this long before the iPhone+Twitpic.
I think not requiring a computer as the digital hub is the future, not the past.