As much of a Apple fan as I am I have to say that even if the iPhone were to be offered on my current network (3) in the UK I would prefer a Nokia N95. The iPhone does not offer any features, apart from the magnificent interface, that my current Nokia doesn't have already. And yes my Nokia can browse the normal internet, not the sorta kinda internet as Jobs made out that it would, and unlike the iPhone I can do it at high-speed thanks to 3G+WLAN.
Very good point the iPhone is weak specs-wise on paper. The Apple difference and power lies in the way the software will work.
I'm not saying that Apple will get this right (I'm not an apple fan, as such) just that that is why there's a lot of fuss over this device. It could be as important as the now ubiquitous iPod and the mac all rolled into one. Which in some respects is exactly what it is.