Let's face it, the iPhone has created something that has become a problem.
While we all like to think that bandwidth is like air, it's not and those of us who live online are starting to suffocate from time to time, without enough bandwidth.
Part of the issue is that the so called "unlimited" data plan of the iPhone has stressed the AT&T network which needs a $7 billion dollar upgrade (which it likely will get this year) but the problem goes farther. Even WiFi networks are being stressed as users at events and meetings log on with multiple devices (iPhone, Mac, other WiFi device/computers/netbooks, etc.)
You see, back in the day the idea of connectivity was simple. The rich did and the less rich didn't. There was dial up. But really, who other than your grandparents and those on the other side of the digital divide due to either geography or economics are on dial up these days. Everyone is on DSL, Cable, FIOS or UVERSE in the USA who sucks up bandwidth. We have EVDO and 3G connection cards, plus those with iPhones and SmartPhones have both WiFi and 3G data available to them. But due to the elimination of competition we have bandwidth scarcity in the USA of a lack of available backhaul (that's what gets your bits and bytes back onto the Internet) and that scarcity is what is the issue.
While we may look at the Austin SXSW incident as the problem, what we're really seeing is a symptomatic occurrence of a problem. Lack of bandwidth. It's just not deployed and it needs to be, or what we'll start to see is more and more brown outs and web site rolling black outs.