I personally don't need my phone to do any more than take/make calls and maybe show me the current time. I still take photos w/ a dedicated camera, since photos from a cellphone camera still look pretty crap to me. (Although w/o them, we wouldn't have all those videos of kids kicking each other in the balls for fun on YouTube. What's up with that..?)
Where was I? Oh, yeah, I'll never paying $499 for a phone, unless that's adjusted for inflation in the future.