If you go on youtube, and see the keynote from the original iPhone, Steve does a great job of explaining why there is no physical keyboard. And it makes perfect sense!
Here is a link that goes right to the part i was talking about lol, about 1:40 into it:
http://www.youtube.com/watch?v=gO420B02Q84
Here is a link that goes right to the part i was talking about lol, about 1:40 into it:
http://www.youtube.com/watch?v=gO420B02Q84