PALM PRE:
8 GB memory limit
No true apps - only webapps (so weak)
No voice and data at the same time (because of Sprint CDMA network)
No voice dialing (WTF)
No video recording (WTF?)
No voice memos (WTF)
No movie rentals (over the air or otherwise) (I like watching movies on my big screen)
No visual Voicemail
No TV show rentals (don't care)
No audiobook purchasing
No true app store (18 is a joke)
No console-quality games (like Resident Evil, Metal Gear, 1000's of others for iPhone) (thats what my Xbox is for)
No Peer to Peer games (^^^)
No VoiceOver (the iPhone can read any screen to you, just like a Mac)
No native in-car integration (iPhone has this with dozens of cars)
No podcasts
Crippled copy/paste (for example - you can't cut or copy a webpage or any part of it)
No universal search (crippled - no e-mail search)
Tiny keyboard (iPhone landscape and portrait keyboards are bigger than Pre's real keyboard) (cheesy virtual keyboard)
No auto wi-fi login (just jumps on any open network and remembers them all)
No 7.2 Mbps network speed (you'll never ever reach those speeds)
No Remote Wipe (false)
No Find My Phone feature
Can't function as a Remote for the household stereo (Great for parties, especially with the iTunes DJ feature where people can request songs)
Weak battery life (same with the iPhone)
More expensive than iPhone (At&t plans are more expensive)
Very scratchable screen (screen protector)
No oleophobic protective screen
No real music store (Apple can break the compatibility at any time and I don't want to take that chance) (amazon)
No Voice Commands (control music playing by saying "Depeche Mode" for example)
No Compass (wow is has a compass)
No multiple and customizable home screens like iPhone (Pre only has one screen)
No Parental Controls
No Video Editing
No onboard Ringtone Creation
No 5 person conference calls
No Webclips