First of all, do you know what "moot" means? It means inconsequential. And the iPhone has been out for 4 days. So to suggest that my comments at this stage of the game are already inconsequential show a severe lacking of foresight on your part. Or, to dumb it down a little, quit drinking the Kool-Aid for a split second to realize that there have been many, many Apple failures. (BTW, calling it Newton-2 is freaking hilarious in that maybe it will fail just as badly as its predecessor. Normally, if I release a product that bellyflops, I try not to bring back memories of it.)
And I agree that the OS is critical to the phone. You know what happened to Apple's stock after it announced that the phone would not be open to third party development? It tanked (as much as it could, given the hysteria at that point). Paying $600 right now for a phone that has no real innovation except the touchscreen doesn't make any sense. It doesn't offer anything new. Which is precisely why either Apple is going to have to push through some major new software releases for the phone really quick, or risk losing the hype it created. Early adopters and Mac Kool-Aid drinkers buy anything. That's not Apple's target audience. Middle America is Apple's target with this phone, and so far, it's too early to tell if this phone will take hold. And if the phone's capabilities don't ramp up soon, people will keep doing what they do now: buy an iPod and a crappy phone made by the countless number of phone manufacturers that offer reasonably priced phones.