I suppose if you don't call having your hardware design, software design, advertising, packaging and a huge amount of IP blatantly and unashamedly copied to produce a billion dollar market, then yeah, no damage.
Reminds me of how Microsoft was going to revolutionise the music industry with their Microsoft Songsmith software - http://www.youtube.com/watch?v=3oGFogwcx-E
Yes, it was a real product and real advert, and it will absolutely crack you up.
But voice recognition on phones is just a gimmick that no one will actually use - according to Microsoft, when Siri was announced. Oh, that's right, if a Microsoft device doesn't have a feature, then that feature is rubbish, until they can copy that feature, and then it's really cool, and then they explain that they were the first ones to come out with this amazing new feature.
What we're seeing in Graphic Design now is a backlash to the use (and overuse) of the drop shadow. The drop shadow became synonymous with web design in the 90s-00's and popped up in print and media design everywhere. Soon anyone with MS Word could add an awful dark drop shadow to anything they wanted. As is the trend in many fields, when something becomes overused and cheap, it is abandoned. And so the flat trend has emerged, in mocking contrast to the tired old word-art...
Certainly if Apple had come out with this it would have undoubtedly been labeled "underwhelming", however, the standard and expectation for Microsoft products is significantly lower. I agree that the landscape display doesn't work well for reading, unless it was word on the underside of the wrist, which would then make it readable. The main issue here is that its demographic is the health conscious fitness addict. Which is a sinificantly smaller market. It doesn't off many...
Actually, I'm sure there is part-by-part copying - as I said, it's a lot easier to look at each part, it's function, design, location and to copy that, than to start with nothing and say ok, let's make a phone.
There's a difference between taking a great idea (ie. the mobile phone) and reinventing/redesigning it to be something even greater (ie. the iPhone), versus someone taking an iPhone, pulling it apart and copying it part-by-part, hardware and software. That's stealing someone else's hard work. It's really easy to be second when someone else has done all the hard work first.