If Apple get it right it will be the fashion phone of choice.
What will be really great is that, in addition to the above, something that is the critical factor as it was with iPod, it will also sync beautifully with Apple contacts, calendars, etc., driving more people to purchase Apple computers, even though I do expect that they will also bundle a nice piece of Windows software (a must).
Apples are already climbing in sales and many of my Windows-using friends are considering Macs for the first time now, not because of all the stuff endlessly debated here, but rather because the iMac and MacBooks are so bitchin'.
Steve Jobs is indeed finally capitalizing on "taste", an obcession of his from the early days. He was right when he said in the 80s that "the problem with Microsoft is that they have no taste. I mean that in a big sense." Now his company is poised to take a large portion of Microsoft's sales by exploiting that vulnerability.
People aren't realizing that OS X is better. They are falling in love with the new stylish Macs, obscure objects of desire. The fact that they are getting better and better, and that they are making a line of easily interoperable products (much more of this to come in the coming 12 months - media center, phone, and maybe even a UPMC) that just make life easier is just a plus that will help to sustain the brand.
Sharp. LOL.