So because it offers a little more than other phones, it makes it a great product ? For a product that was advertised as the iPhone, there are a lot of expectations. People are realizing that it's not exactly what was promised.
It may offer up to 8Gb's of storage, but for video, photos, music + phone, it's far from enough. Then, there's battery life for all of this. I use my iPod all the time, the battery dies very quickly now, imagine how frustrating it will be when your iPhone dies every 2 hours. t won't be as much fun. This thing seems to consume more power than your standard Nano.
On top of that, they talk about a phone running OS X, but that phone needs to be synced through iTunes. No .mac integration, no OS cross functionality. It's basically an AppleTV with a smaller HD and an integrated phone.