Yup, people do seem to gloss over Apple's failures a lot. Does anyone remember the tiny shuffle?
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Oh man, I LOVED that shuffle. It was kind of useless to me, but I wanted one. I still kicked myself for not picking up the limited edition stainless steel one just to have.
One store here still sells the retail ones as new, lol. At full price. That is, more expensive than current shuffles. Lol.
Anyway henrygale puts it best - the iPhone 5c is selling more than the iphone 5 would be I reckon, and that's the point.