"No windows PC can run iPhoto or Mail. Or MacENC." There are plenty of PC substitutes that work just fine and therefore there is no requirement to run them. And no, that is not my best example, just one that sailors can relate to... Here is a much better example:

Here is the big hidden secret... how does Apple design all that hardware? They do it on Macs running emulation programs to use engineering software that is written for PCs.

Prior to Macs using the intel processor, Macs were designed on PCs running AutoCAD.

Macs work beautifully in their little mac world (Which BTW includes itunes, which was developed by Apple to fit their music player) As I said, they write the spec, then develop the hardware to that spec.

As for the ATT issues... Yup ATT underestimated the popularity of the iphone... so the RF side of the network doesn't have the bandwidth to support it. ATT also chose to use a bandwith limited modulation technology... GSM. Interestingly Android OS is currently overtaking the "beloved" iOS in the smartphone market. So the reality is the bloom is off the rose.

As far as apple selling only high end computers, that is the equivalent of being told that you have to buy a Cadillac to do your daily commute... when a Ford Fiesta would not only do the same commute, but save you thousands in purchase price and gas. Oh sure if you can afford the Cadillac, go for it, but not everyone can.