LG Proda had a capactive touchscreen, but it failed to use it. You simply pressed virtual buttons instead of using gestures. Pinch to zoom might not seem like a big deal but it's something that iPhone got right and everyone copied.

Another issue is LG Proda stuck with J2ME instead of offering native apps.

So, the Proda was close, but it really missed the mark. IMO, the fact it took 4 years to after the hardware was possible before the iPHone showed up shows how significant the innovation actually was.