The article does make a couple of good points.

You can't really deny that the current semi-monopoly structure of US cellular service industry is a drag on innovation and growth. All you have to do travel to other countries to see how far behind we are in development and adoption of wireless services. The US's high-price, low-service model is enforced by the double-whammy of the service providers' restrictive customer service agreements and control over phone technology. For better or worse, this is the market the iPhone is entering.

The interesting thing about the iPhone is that it's the first wireless device not modified by a wireless company before release -- AT&T/Cingular did not even see the prototype. Steve Jobs was able to broker a deal that was acceptable to the entrenched interests of the wireless industry and the record companies, while at the same time giving consumers some features they actually want. That's the real breakthough. We'll see if it's a big enough crack in the dam to give market forces a chance to work.