What I like about the i-phone, is what I like about Apple. They don't make the best products always, but they encourage the whole market to look at them for a minute, before they going back to creating their competing products....
Take i-tunes/ipod for example, mp3's were out for a long time before itunes/ipods came along... But back in they day, turning a CD into mp3 tracks was something that took the average computer most of a night to do... making playlists and setting up your mp3 player for a listen, took some advanced planning before you could enjoy... Then along comes the ipod, plug it in, and you have your music... (ok, almost that easy) But it encouraged the masses to move their audio from their cd-racks to digital files and competing companies to pay attention to the things they did right.
The i-phone is OK. But of course their model that worked for i-pod already may work again, incrementally make updates and people will buy the next new one when they are ready. If i-phone packed in all the features that they could have today, why would anyone upgrade next year? What i-phone points out to the masses is two things, data services are prime time with phones.. You no longer need to be tied in any way to your desk, home, or laptop to get the information you want. And secondly, multi-function devices that the whole world can use are here to stay. I'm talking about your device, which connects you to your people & calendar/music/photos/work... and that the rest of the world can use, thats right, they built it on GSM standards so you can travel from country to country and switch from carrier to carrier with the flick of a SIM card.. Sorry Verizon/Sprint, join the rest, stop being stubborn.
Honestly, my Sony Ericsson k790a is much nicer than current i-phone releases... but i'll save that discussion for another time.