I partially agree with you, but I'd like to point out that, from some points of view, launching the iPod was Apple's first step in their current direction.
I would venture to say that launching the iMac was turning point A, the iPod was turning point B, and the iPhone was turning point C.
The TiBook was also quite nice, though I wouldn't call it as significant as the iMac in pushing Apple toward stylish and well designed consumer devices.
