No, it is about Apple being a business and wanting to make money.
If they just threw out all of there cards they could sell millions of devices, but what next? Instead lets put out X number of features in this device and slowly integrate new ones, thus making people upgrade, but not forcing them to. This generates higher numbers of "total" number sold, higher profits because people are buying multiple of really the same item with slightly newer features.
While I agree to an extent, Apple's philosophy has really become Aesthetics over Function. I mean, take a look at the macbook pros, they sacrifice cooler operating temperatures and larger battery capacities for about 3-5 mm. The 1 button mice sacrificed usability for aesthetic or simplistic value. Mac mini without a dedicated grapics chip. The use of adhesives rather than plastic clips or metal locks in recent ipods which prevent the ease of component replacement, although this probably helps generate sales.
If what you said was totally true then why do they continue to shave off battery space (or at least use the exact same batteries in todays devices that were powering the 4G ipods) to get thinner and thinner handhelds. I think we'd all like 10 hours movie battery life, and this would be relatively easy if the device was an extra 4mm thick. I don't see them doing that any time soon, because it violates their thinner is better motto. It actually *was* their motto until the Association of eating disorders came down on their asses for it.
But who cares why they do it, I just wish they'd stop. I guess it's another year of waiting with my current ipod to get a larger one.