Certainly a LOT more storage than Nokia's latest uber-complicated $1100 monster:
http://www.reghardware.co.uk/2007/05/01/review_nokia_n95/print.html
160 MB--expandable to only 2GB--on a phone that costs far more than an iPhone (even at discounted street prices), is nearly twice as thick, has a tiny screen with no touch-based UI, lacks anything approaching iPhone's Safari... and gets half the talk time

I like the GPS... except the Nokia also lacks WiFi and Bluetooth which I like even more.
Just to put the iPhone in the context of much "higher-end" competitors
Hate to burst your bubble, but your comparison to the Nokia N95 is completely incorrect.
It is currently selling at Dell.com for $736. It is unlocked and unbranded, meaning that you can use it with any GSM carrier (not only AT&T). It is quadband (like the iPhone), but available now, which means it's available throughout Europe. It also has GPS, Bluetooth 2.0+EDR (and A2DP, meaning stereo over Bluetooth), and WiFi (802.11b/g). The GPS works with the built-in mapping program that has maps for most every country, and you can preload map data for which state or country you like.
The N95 also operates on the UMTS 2100MHz band, which translates to 3G data for most everywhere BUT the United States. (However, T-Mobile USA is going to be rolling out their 3G UMTS network on the 2100MHz band later this year, which means all those nice 3G phones in Europe will work here.) Oh yea, not to mention the forward-facing VGA camera for video calls; or the built-in VoIP support. (Oh yea, the N95 has a great message editor that automatically switches to MMS when you add a picture, sound or video clip to your SMS ... you can't do that on the iPhone because the iPhone does not support MMS!)
The N95 also has a hot-swappable MicroSD card, which is now available in 8.0GB sizes. Its media player plays MP3 and AAC, as well as MPEG-4. Its camera is a 5MP Carl Zeiss optics with auto-focus and flash, and does video at 30fps. Not only does it take pictures and videos, but it comes with image and video editors built-in.
When it comes web browsing, the web browser on the N95 (just like all S60 3rd. Ed. devices) is basically Safari (it's based on Webkit, and has been for over a year), and includes a feed reeder for RSS/Atom subscriptions. It also comes with Flash Lite, and the next version (S60 3 FP2) will include widgets. The S60 system is built on Symbian 9.1, which has been tested tried and true in the field and in use by many many people. Not to mention that programs may be written in C++ or Java for the device.
The N95 will also sync with your Mac through iSync, as well as sync your music through iTunes and your photos through iPhoto. You can also have as many email accounts as you wish on the device, and supports push email for Blackberry and Exchange accounts. You can also use is as a wireless modem for your Mac over Bluetooth. Plug your N95 into your TV and play your videos full screen at 30fps, or PowerPoint presentations. Or plug it in to your HP printer, because printing support is built-in, as well as viewers for Word, Excel, PowerPoint and PDF; editors are available.
What does the iPhone have that the N95 doesn't? A touchscreen, which sounds great, but ever tried to punch in a number without using any physical keys? It's not as easy as it sounds, especially if you're doing other things at the same time. Plus, touchscreens have reduced contrast in sunlight, which the N95 does not suffer from. Coverflow? Eh, so it's eye candy. And automatically switching between portrait and landscape modes? The N95 can't do it automatically, but it does switch between portrait and landscape.
After seeing the list of things the iPhone cannot do, and every that the N95 can do, I think you can see who the clear winner is. Not to mention that if AT&T sells it without a contract, the price will probably be $200 more than listed. That makes it almost the same price.
The iPhone is NOT a smartphone, it's merely a well-hyped "feature"-phone. If you want a smartphone, look at Palm, Blackberry, Windows Mobile, UIQ or S60.