I think you are putting out a straw man argument that people are saying this phone is perfect for *everybody*. It's just perfect for what they want (or close enough to it, as is the case with me).
You bring up many valid features that the iPhone indeed does not have. BUT, all features are not of equal value. Imagine a scale from 1-10 where 1 means that the feature virtually useless or non-important, and 10 means that the omission is a really big deal: a total dealbreaker. Now, let's look at the iPhone negatives and try to put numbers on them. This will represent *my* opinion to show you how I came to the conclusion that an iPhone is a solid choice for me.
No removable battery = 1. iPhone has great battery life and the dock connector allows battery packs (rechargable or AA) that work just like an extra battery would (same hassle of carrying it around everywhere). The only *real* issue is having to send it in when the battery gets old, but that's a one-time hassle that may not even happen before you switch out the phone for a new one.
No 3G = 5. If you live in a 3G heavy area but have little Wi-fi access at the places you go you'll be majorly annoyed (a "10" for you). If you don't get 3G anyway but have tons of Wi-fi access you won't even notice the lack of Wi-fi (a "0" for you). It's going to depend on the user so I split it down the middle. For me personally, it's still a 5 (I am in a 3G zone but I'm also attached to a Wi-fi network almost everywhere I go except my car).
No video recording = 3 for me. I can think of a few occasions where I'd use it, but mostly it would sit there unused. For others, it's different. It would have to do really high quality video for me to be interested, but at that point the cost would not make it worth it (to me).
2 MP Camera = 2 for me. I'm a wannabe photographer, so I'd only use the phone camera when I don't care about quality too much anyway (informal things or unexpected things, for the rest it's a DSLR). I'd say the camera is perfectly adequate, nothing more, nothing less.
Searchable contacts = 1. It makes sense to add, but I don't have nearly enough contacts (100?) that scrolling will be all that hassle. Seems like an easily upgradable thing to me, anyway.
No Adobe Flash = 3 for me. Some sites I frequent do have flash and it will be a pain to not be able to quickly check out that content. It's really the only downside I see to the Browser which otherwise looks amazing. The YouTube client mitigates a lot of the pain.
No Custom Ringtones = 2 for me. I more just want to be able to put my own "beepy" ringtones than I do songs, but I see how a younger crowd will be sad they can't let the world know how much they love Kelly Clarkson every time somebody calls them. I think this is some legal thing and some custom ringtone solution will show up in software eventually
My point being that a few issues are somewhat big (3G, mostly), dealbreakers even for some out there, but most are way overblown as being things of any importance for many people. When you contrast with the indisputable positives:
- the "iPod" portion. The media portion of this thing just looks insane. Great interface.
- full email with pictures. Even exchange support (which I absolutely don't need, but others do)
- wonderful UI (this is so key it should get listed twice),
- visual voicemail. People complain about ringtones, but ignore this long-need feature? This has been a long time coming.
- really smart wi-fi management
- really great browser (arguably the best on a mobile device)
- awesome google maps implementation (even without GPS)
- Large, beautiful screen with a higher resolution than the competition
- Great conference call management.
- etc.
The picture painted is a phone that does what it is designed to do really well but with a couple of big caveats (3G...) and a few niggling software update issues (search, no IM). In total, much as the reviews seem to say, the iPhone mostly delivers but there are a few drawbacks. Decide how much those drawbacks matter to you and choose accordingly, If they don't apply (they don't apply that much to me and I have faith that most software gripes will get ironed out) and I don't see how you can say my decision to get an iPhone is wrong or that I'm falling for the hype or whatever it is. Trust me, I'm well aware of where this thing shines and where it doesn't, but it's mostly shine as far as my personal use is concerned. I'll be happy to see this thing get updated with time and probably get the REV C when it hits in 2 years (assuming my experience is positive).
There are very few phones with the "full" internet with 3G, but I *could* get one of those, sure. But what I'd gain in speed every now and then while I'm out and about I'd lose in other places (UI, screen, visual voicemail, prettiness, cost (N95), etc.)
