It's a nice strategy, I think. PC people saw the iMac (original). They thought: "Oh, that's a tad too fancy, but it's nice somebody's doing 'em." When Apple introduced the TiBook, they were struck with awe... Still, maybe, they didn't want to actually own a Mac, mostly because the Ti's were quite expensive. Then the icy iBook came along, and even more 'switchers' with them, as the iBook was a cheap entry into a world they knew was kind of - beautiful. The iPod was the first _real_ entry of Apple into 'their' world. Now they could buy something from Apple without leaving the platform. Yet, buying an iPod gives you access to something refined, something that - wow! - works... And if iTunes shows them how applications _could_ be like the cool hardware Apple's making, maybe even more will switch.
And believe me, Apple _can_ use market share. I think the 'Digital Hub' strategy makes more and more sense - and it's attracting more and more people to the Macintosh platform, because even Sony doesn't get their media-packages-winxp-digital-hub-thingies right. Apple can and does get things right.