I think that one major difference is that the iPhone supported an "easy" way to do software updates, which was never a thing prior to smartphones.
Remember that the iPhone wasn't really that good at launch, either. No copy/paste, no App Store, etc. There is a scene in the movie Sex and the City, which was filmed pre-launch (right?). One character hands an iPhone to the other, who looks at it for a few seconds and says something along the lines of "I don't know how to use this" and hands it back.