I also studied computer engineering.. yet I don't find it difficult to understand why people like apple. Of course, I don't get why people think linux is for the masses, either (Let's see my grandma figure out the library dependencies when trying to email kitten pics to her friends at the senior center)
Users love it, because it just works.. why does it work? Because they have provided a standardized platform with which to develop on (no wondering, does the user have a keyboard?).. Because they QA the crap out of everything they put out.. Because they provide a robust suite of 1st party apps at release time of new hardware.. Because they put a lot of money into developing an intuitive UI.. and most importantly, they are able to find something to capture every audience. Example - PopCap games may have been around for a while, but you'll never catch me lounging at home playing one. When I am at the airport with just my phone and a few minutes to kill, though, it is hard to beat Plants and Zombies.
Look at all of the features that iphone introduced that are now considered standard for smartphones. They hit the nail on the head.
Yes, I am dumping my iphone after 6 months, but it is because of AT&T, and not the iphone. Sure, you get bored of a device after 6 months, and I will enjoy free tethering, Flash, and turn-by-turn navigation, but again, my grandma doesn't know what any of those things are.