Summary
While this article is correct in its coverage of AT&T and the iPhone it only covers the surface and doesn't go into detail regarding how much the iPhone is changing the landscape. The real change that was only lightly suggested in the article is that the iPhone introduced the public to a new user experience. While it is true this new user experience is made possible by the iPhone hardware, what really is driving that experience now is the software.
Analysis
Focus on the iPhone hardware only gives part of the picture of how the iPhone has changed the game for AT&T and the cell phone market in general. A bigger change and one that could have even greater implications is that Apple opened the door for custom application development on their platform. Up until that happened the US carriers had an iron fist hold on any software developed for deployment on their service.
By giving software developers a chance to develop and sell their iPhone creations directly to the iPhone users, Apple has in essence changed the power structure of the industry. Where before the major carriers had all the power, now that is changing. Hidden in the article is the fact that AT&T had to share product decisions with Apple. Apple dictated what the product would be and how software would be developed for it. Then Apple opened the platform and let anyone who wanted to develop an application for the hardware do so. What we see here is very reminiscent of what Microsoft did with the PC years ago. Build an open platform and let the creative power of the development community and the free market carry them to success.
Now the genie is out of the bottle so to speak. The real winner here is likely to be Apple more than AT&T. By opening the platform Apple has created a huge advantage to AT&T because users can find more available applications for the iPhone than all other phone put together. It isn't even close. Other carriers will have to change the way they control applications on their devices. Software will become the new battleground for customers. Apple is the clear leader now and if they manage things well, they may become more important any of the carriers.
