It is easy to understand why CEO Jim Balsillie is telling investors a sequel to RIM's touchscreen BlackBerry Storm is in the offing. Consumer handsets are a huge market, but it is not one I can imagine RIM will ever control.
My guess is that about the time RIM comes out with a Storm replacement that Verizon will start getting iPhones. Verizon customers who now purchase Storms because they do not want to change carriers will jump at the iPhone the moment Verizon has some to sell.
This will leave RIM, essentially, all dressed up with nowhere to go. Even if timing is off a bit, eventually Verizon gets iPhones and RIM loses.
A better play, I think, would be to make RIM's keyboard-based devices more attractive to iPhone customers in hopes of luring business customers to its arguably better handsets.
That requires lots more applications for as well as, yes, a competitive music and applications store. The handsets also need the same camera, GPS, and other features of the iPhone as well as excellent Windows desktop support.