Trippin' people, TRIPPIN'
First off, it's just a PHONE, and it hasn't even been released yet. Everyone's all pissy and moaning.

Seriously.
Let's recap. Apple specifically said this is NOT supposed to be a Palm anything, but rather an iPod/Phone/Communicator. Instead of shooting in this PROTOTYPE, let's recap what it CAN do:
1. What is the price of an Apple 8 GB Nano (same memory as the phone)? $249. The Nano doesn't even have a large screen or video playback. The iPhone has a 3.5" widescreen for watching movies, web browsing, etc. That's the biggest screen of its kind on the market.
2. New patented technology (visit this youtube video for a demonstration of the new technology Apple "acquired" and what it is able to do,
http://youtube.com/watch?v=89sz8ExZndc ). Using two fingers to zoom in and zoom out is just a hint of the features multi-touch screens can do. Scrolling with the use of a finger swipe, zooming in and out by pinching, touch screen texting are all just a taste of what's to come.
3. Voicemail access for individual messages displayed on the unit by caller.
4. One touch calling and answering.
5. WiFi and GSM/EDGE and HSDPA (which Cingular and T-Mobile use as well as international carries such as Orange, etc.) for some of the fastest download rates avaible in today's market.
6. Google maps, allowing the user to locate retailers, restaurants, people - all without dialing 411, based on the iPhone/users exact location.
7. Widgets for stocks, weather, calculator, alarm clock, and any other widget that is available.
8. Notepad for tasts and notes.
9. OSX. Period.
10. Safari browser which syncs bookmarks.
11. Accelerometer sensor which shuts the phone off while talking. Many of my friends who have Palm Treo's always complain that they hang-up during calls because their ear hits the "End Call" button too easily. Not with the iPhone.
12. Proximity senser for vertical or horizational intuitive viewing.
13. HTML e-mail.
14. Multitasking that allows web browsing while downloading an email, etc.
15. Bluetooth 2.0 and a real slick bluetooth headset.
This is just a prototype, so I'm certain changes will be made before actual release. Regardless, this thing is brilliant. BRILLIANT. Nothing like it is on the market, especially with the features. If you think about the cost of an iPod ($249-$349) plus what a Palm Treo ($499 with a two year contract with Verizon). Add those two up:
$249 + $499 =$749!!!!! The iPhone can do more than those two combined AND MORE for the same price as a Palm Treo 700 ($499). Why all the bitching and moaning? What's interesting, everyone internationally (except for Japan) who has read about this has had very little complaints, yet the American's are all too eager to bitch and moan.

How sad...