There is nothing particularly brave about cannibalizing a rather cheap product (iPod) with an insanely more expensive one (iPhone), that also turns out to become obsolete much more quickly. I should know: I bought one iPod Nano and my sister-in-law is still using it today, however I'm on my third iPhone already.

The iPad Mini cannibalizing the iPad, or the iPad cannibalizing the MacBook are much bolder moves. That iPad Mini Retina does look good...

Yup, and also how successive generations of the iPod blew the previous generations out of the water, again and again.