I ...
... entered late to the game with a used and broken iPhone 3G. I repaired it (sensor failure and broken dock connector). It turned out to be a O2 UK locked device. I could use it in my country, but no data because of (/§$§§$&$$% dataroaming fees. I thought the unlocking was a breeze - it wasn´t, as I had no luck and must use the device in O2 UK network first. Unfortunately no scheduled UK visit, so ... I jumped right into: jailbreaked it, downgraded the baseband and unlocked it that way. I have a cheap phone plan (tied to my DSL provider, no monthly cost, just billing of usage, except for a US$8 mobile data flat). Mind you I was coming from a Sony Ericson T610 (yes, still running strong, but reliable fullfilling our mobile needs).
Ever since my networked life has changed drammatically. I use it heavily for Websurfing, eMail, Facebook, eBay, Videos (mostly via EyeTV mobile and Air Video, to access our media library), read eBooks/PDFs of any sort, music listening, VNC into our desktops, paint on it, take snapshots and video footage from our offspring, connect to local map services and train schedules attached to the GPS, first stage medical problem solving, almost anything information related pumps through this device.
We thought of getting a netbook - cancelled for the time being and inconvenience it might cause. Even the iPad, albeit its similarities to the iPhone universe, will be postponed for now mainly due to its size and some lacking killer features (like a front facing webcam).
Nevertheless, Apples hardware and interface design is brilliant in many ways, flawed in some; But because of the huge jailbreak community this is kind of sorted out and equalized for the better. Basically it turned my old 3G into a full featured 3GS (ok, lacking the speed, of course), having almost any (software) tool you could imagine available at your finger tips. Apple doesn´t like it officially, but their designs lead it that way, a natural path of some sort: They pack, we hack, and vice versa.
We first had an iPod Touch, but it soooooo dwarfed compared to what the iPhone can handle. There is no going back. I am quite optimistic about the upcoming iPhone HD, although I won´t be able to afford it on launch (well, if it has a front facing webcam, I am all sold).
Android is developing punch, but yet is lacking the mind of its community compared to the iphone branch (legal and half legal one, of ocurse). Devices just start their spring life when they are hacked and - most important - used extensively. I spot the Android hardware there in a coiuple of years, if they get their acts together. Don´t forget: There are several Android based devices out there left in th cold by phone providers. It´s still nothing compared to the force the iPhone universe has developed.
Sorry for this hail´n´halleluja, but I infact did see the light! Blinded in awe I walk, I saw ;-)
PS
Occasionally, I phone it, too.