Well, the truth is somewhere in between. A decent market for now perhaps depsite the hesitation in buying the first gen product because of its imperfections.
On the flip side, there's a decent market for people with disposable income who just always have to buy the latest and greatest gadget because they read about it online/because it's new and fresh.
Yes, though it's not a great market. Usage tends to be low (they sit in a drawer) so there's not much follow-on app store revenue, and developers don't target your platform.
"Developers! stomp Developers! stomp Developers!" is actually great wisdom.
