[itronitron]

From the link you provide...

>> Because of the iPod Nano unveiling on the same day, relations between Motorola and Apple were strained and Motorola CEO Ed Zander later accused Apple of purposely undercutting the Rokr.

Apple probably saw it as an opportunity for free iTunes and Nano advertising.

[MBCook]

I don’t know about advertising. But I would be willing to bet money that Steve Jobs chose that day for the Nano to do exactly what Zander thought: screw them over.

They (whoever ‘they’ is) caused the phone to be terrible even though it had the iTunes name on it. So Jobs got revenge, as he always did if he could.