There were also some pretty easy jailbreaks after not too long, which allowed for 3rd party apps before Apple had an official store.
I think the only things holding back the original iPhone were the price and production volume. As I remember, it sold out quickly. And everywhere I went people were every interested in it. The guys selling cell phones at the mall were trying to stop me to see it, a girl at the bar said having that was better than a puppy. Pulling it out to use it was like being a celebrity, everyone started paying attention and trying to get close to it; it was a very strange time. I don’t recall anyone saying they didn’t want it due to a lack of features, other than people online looking for clicks or who had a history of Apple criticism.
But I'm talking more like culturally / philosophically, I don't think Steve Jobs would have marketed it this way or wanted it framed this way. To that point I'm not sure he'd have green lighted the product at all. It can be very dystopian. The silly eyes thing seems like someone along the way realized that and is trying to mitigate it poorly.