This is a fair point, but that's the engineer's point of view. Looking at it from a product manager's perspective, why did so many decline to make the investment necessary to make touch work for the consumer? I would argue that they simply didn't perceive the enormous difference it would make (ie, that the risk was worth the reward). Faced with the engineering challenges you describe, they decided that there was just not enough difference between using a stylus and using touch to justify the cost. A small product change can still be very expensive to make.
I agree that's a proper description of why Microsoft, etc, didn't do touch first, but what exactly is that relevant to?
Your contention earlier was that stylus -> touch was a "tweak." My point is that it's not just a tweak, it's throwing out the existing model and starting from scratch. You implicitly acknowledge that by referencing the investment to make the change, an investment that is incurred by having to throw out the existing design and start over.
Touch was not a tweak. It was throwing out the steering wheel and asking "so now how do you drive the car?"
It was throwing out the steering wheel and asking "so now how do you drive the car?"
Exactly my point. Let's say it drives by telepathy. The car wouldn't change much: it would still have a driver and be driven on the road. It would still have an engine, passenger seating, storage space and cupholders. It would still at a glance look like any other car. But that apparently small change would result in a profound change in the user experience (and yes, profound engineering challenges for the maker). It's a better car. But it's not an entirely new class of transportation, just a tweak to an existing one, like the automatic transmission and hybrid engines.