I'm not an Apple fan boy (run Linux on my laptop - even installed Ubuntu on my daughter's laptop), but unless you've used an iphone, you have no idea how useful it is. I gave my wife one last year - but didn't get one for myself because I couldn't stand the idea of forking over another $30/month to AT&T - after all, my wife and I spend most of our time together, so I figured that if I ever feel the need, I could use hers. But during this year, the iphone has become so indispensible, I caved in this July and got a 3GS.
You speak of how the iphone doen't have this and that technology of other phones. I had a RAZR and a SE W350 (a music phone) before the iphone. Both had a bunch of features - that I never used because I couldn't be bothered to find them in the endless menu system; they had a browser too - but I couldn't stand the tiny screen and clumsy, unintuitive navigation (I briefly considered the Nokie E71 - even ordered it on Amazon - but when I tried its browser, after having used my wife's iphone for a year, I cringed...cancelled my order and got the iphone). Anyway, the point of the iphone is not the technological features - the point is how easily accessible the features it does have become to use.
For instance, show me *any* cell phone that lets me click ONCE to bring up an app that lets me search for anyone in the white pages, type the search criteria (without using some gawd-awful numeric pad), click ONCE on the list entry you want, and click ONCE more to add the name, phone number, street address to your phone's contact list. Show me a phone that then lets you, with a single click, bring that same contact up on a map and with a second click get directions from the current location.
The iphone is not a gadget - it's a device that integrates a few core functions better than any other phone (in terms of efficiency of operation) and is made more useful with every application that's added to their app store.
Having extolled the iphone's virtues, I must say that I'm really disappointed in the 3.1 update. I just downloaded it last week and, ever since, I've been having more trouble surfing over 3G. Don't know where the trouble lies - seems it might be Safari as I can still effortlessly browse the app store when I'm timing out in Safari. Anyway, the most frustrating part is that there seems to be no easy way to complain to Apple when one of its updates causes these problems. Don't wanna run to some friggin "genius" bar (where, in the past, I've been simply told to "reset the phone" :-(