Back in June Apple announced a replacement to its .Mac service called MobileMe, which would supposedly bring (among other things) push mail, contacts and calendar capabilities to the iPhone or iPod touch. The vision was both exciting and ambitious, but unfortunately the transition was plagued with mishaps that went from frequent outages to lost email messages.

Apple has reportedly sorted out all the issues with the service and offered a 30-day extension to contracts as an olive branch to disgruntled users, but it appears that the MobileMe launch debacle is still haunting the Cupertino giant.

In an internal email leaked to Ars Technica, Apple’s Steve Jobs admitted that it was “a mistake to launch MobileMe at the same time as iPhone 3G, iPhone 2.0 software and the App Store” adding that the service is “not up to Apple’s standards.” As a result, Jobs has reorganized the MobileMe team and vowed to make it a service they’re proud of “by the end of the year” – which obviously won’t sit well with those who already plopped down their $99 for a year’s worth of service.