That's just incredible. Milk made one application, gave it away for free, summarily shut it down, and sold for $15 - $30 million. I understand these guys are very talented, and that Google was buying the talent more than the product, but that's quite a price for some gifted people!
I completely agree with this sentiment. Look where automobiles were 100 years ago - nothing like the vehicles we use today; vehicles that are designed to squeeze every last MPG out of a gallon of gas, or can keep us from dying in a major car accident.
Computing will improve. Computing will always improve. I think rants like this are helpful to point out where we definitely can improve, today, to bring on the future - such as making the iPhone dev and release process easier ;-)
Actually I might be way off with the iPod...