This is why I hedged with the word 'significant.' I completely agree that people were making and selling apps for mobile devices before the iPhone came along. Can we both agree that the ecosystem exploded in size and visibility to the general population only after the iPhone was released, though?
That's what happens when something becomes consumer focused rather than (essentially) B2B. Prices go way down, sales go way up. I paid $50 for a Palm app back in the day, and that same app would go for 99c today. That doesn't mean the Palm app marketplace was insignificant or unimportant. Smartphones wouldn't be here if their value wasn't proven with PDAs.
You're quite correct that the market is much broader now - not only are there more consumers, there's more developers.
But to me, this doesn't feel different - just larger.
Even the cycles seem to the same - with early adopters leading the way, the first wave of quick and dirty apps, then more polished apps, and then the tsunami of shovel-ware that kills the market for newcomers.