Clearly you never used a windows Mobile device if you can even think to compare the experience with those awful devices with a far, far superior experience.
The iPhone is the first smartphone as we know them today, denying it is simply lying.
Source: I owned Windows CE / windows mobile devices since as early as 2001 if I recall correctly.
The second generation iPhone was the first as you know them today. The first was a glorified iPod Touch with a cellular radio stack. In fact, aside from the better touch-friendly screen, the iPhone was a step backwards from Windows CE/Smartphone/Mobile devices because on those I could run applications.
Source: I owned Windows CE/Smartphone/Mobile devices starting with the Samsung i600 and was actively using a Treo 700w when the iPhone was released.
Source: I owned Windows CE / windows mobile devices since as early as 2001 if I recall correctly.