commercials are so true. sure the iphone has a good UI....but, ummmm.....THAT'S IT. the iphone brings no value to the consumer other than linking the consumer to apps such as itunes and the app store to spend more money.
where is the great 3g reception? the tv? the turn-by-turn gps? video recording? voice dial? replaceable battery?
oh, but we got the app store so we can spend more money. the itune app so we can...spend more money. and now.....a SCIENTIFIC calculator to calculate how often the phone crashes and can't hold a 3g connection.
yah!
It depends what kind of person you are. The iPhone is limited in what it can do, but everything it does, it does better than any other phone out there (minus some issues which are being worked on). I'm the kind of person who can live without features like TV, for better quality software everywhere else.
This is the strategy Apple has been using for years. Macs aren't functionally superior to Windows (in fact, they're often found lacking), but the things they do, they do right. What's the point in having a million features when less than half of them work properly? Apple is about quality, not packing in features. See Snow Leopard.
Besides, you act like the UI isn't a big deal. The UI is one of the most important aspects to any consumer electronic device. If it's too complicated, then it doesn't matter how many features you have, because they're inaccessible to most people. The iPhone was the first smartphone to put any effort in to usability, and it's still the most accessible smartphone on the market. And that's backed up by numbers: 80% of users use 10 or more features, and there's 90% customer satisfaction.
98% of users use it to browse the web, 94% use it for emails, 90% for text messaging. These are unprecedented figures. Look at Weblogs Inc (Engadget, TUAW, Joystiq...etc) - 95.8% of their mobile traffic is from iPhone users, despite the iPhone not having anywhere near that kind of market dominance. That's what having a great UI does.