I didn't want one... I made fun of it actually (I had a PDA with a bigger screen, removable storage, and I could install apps on it rather than be stuck with what came with it). Wasn't until they got real GPS and an app store did I want one. And it's the app store that really made me appreciate it once I got it (The ability to install apps to what I wanted to use my phone for). Especially for the fact the apps were a lot cheaper (ewallet for it was at least half as cheap as what it was for my windows PDA).
Steve Jobs and Apple better be thankful that some one got Steve Jobs to be ok with allowing third party apps. I'd be either using a Windows PHone or an Android if he hadn't (the iphone would not be all that useful without imho).