Not making a deal with Verizon was a terrible mistake on Jobs' part. As Android gets stronger it will continue to bite Apple on the ass. Apple could have had it all in the smartphone space. I'm not saying it was as big a blunder as letting Microsoft get the upper hand with the desktop, but Apple could have done much better had they opened up the phone to all carriers right from the start.
As far as the best designed smartphone, that's only true if it's in a case.