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Yes, Job was very clear it was iPod, Phone, and Internet in one device.

https://www.youtube.com/watch?v=x7qPAY9JqE4

But the first couple really didn't do much more than that. Other features were rudimentary or missing, even compared to other phones of the day.

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Yes. The initial iPhone did very little. The internet part is the critical component to justify the device that is missing in describing it as a phone+mp3 player. Internet was becoming a standard feature for phones of that era. The possibility of a music steaming service like Spotify (or YouTube), meant that the core value proposition of the iPod was at risk.

Let’s be clear: the Internet was available in phones of that era, but they were not well integrated into the experience. I recall having a Blackberry that required two minutes to “log in” to the Internet when you wanted to actually use it.

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