But on the other hand progress was quite good. Back in the days I was maintaining unofficial images for Alcatel Fire. Each version was a little bit faster, but you really can't do much when the whole OS is a browser running on a device with with 256MB of RAM and a single core CPU.
The Pre had 256MB and something like a 600mHZ processor. While it was no speed demon, I was always impressed with the animations and multitasking they pulled off with it.
A big part of the market share loss was due to monopoly and distribution lockdown of a controlled platform tightly tied to hardware, so I can certainly see the strategic wisdom of the attempt. I suspect they didn't have the resources to press forward, they had a lot less money then than they do now. Which makes it all the more maddening that Yahoo's role as a partner was so muted; it could have made the difference for both of them.