The ad works because it says something we all feel about phones, even if sometimes we're the ones bumping into people. It's annoying when people walk around with their mind and eyes elsewhere.
It also works because it doesn't mention the competition. It isn't about the competition. It's saying -- hey -- we've been paying attention, even though we haven't had a product you lust for, we know what's going on.
But that's not the first thing we need to know. We don't want to buy a phone from someone we don't admire. Apple made it about that. I bought a Droid because they had something Apple didn't -- macho and guts and freedom (or at least the promise of freedom) at a time when iPhones seemed wimpy and locked-up and unreliable. Now with the iPhone 4, Apple is selling luxury. And as always selling Apple.