Earlier quoted context omitted.
A couple years before that the Blackberry 9900 added a touchscreen to their standard form factor and even without using the touch feature it was more than usable to browse the web on. The small click/touchpad was a delight to use.
And it wasn't enough to stop them from hemorrhaging customers. People wanted bigger screens with more rich UX. Dedicating so much real estate to a physical keyboard still harmed a ton of apps considerably compared to the 3.5" screens on iPhones of the time.
Those phones were also the best MP3 players I ever owned - I had an iPod touch at the same time and the UX of copying over/selecting/playing music on that simply didn't compare.