The Rare sell off, as horrifying it was to us fans, was an move meant to get rid of dead weight. Rare was running itself into the ground, taking far too long to produce mediocre games at the end of it's term with Nintendo.
While the Rare name itself was still gold plated, it was a poison pill Nintendo was happy to sell to MS.
Apple isn't a major threat, not a direct one. It competes for attention like everything else. The iPhone/iPad will never be an adequate game machine. It lacks the hardware, controls, investment, good software. The crap game to good game ratio approaches divide by zero. On the game front it is not a lasting threat, but as something that takes time away from gaming? Yeah, it's a clear and present danger. The games are crap, but casuals being a fickle bunch, only want to waste time, which Apple can do a lot of, 5 Minutes at a time. As a game machine, it is woefully sub par to us, but a casual, it might be just be enough.