It is a prototype showing the power of Nvidia's new mobile GPU. Although I still don't see how you can view this as a step backwards.
Ok, would we really call these new features? They were really just alternate ways of doing things other phones already had. Im not trying to take anything away from the iPhone (i had one), but it really just refined the features already out there. Nothing we haven not seen before.
1. Multi-touch movements - The ability to use an extra finger proved quite useful when viewing pictures and zooming in Safari.
However, there were plenty of touch sensitive (single touch) phones out there.
2. Accelerometer - Used to switch to landscape mode (other phones switched when you opened the keyboard)
3. Proven mp3/video player integration - I'd say Sony Erricson phones and some higher end Nokia phones had this down.
4. Full web browser - Very good web browser, but no flash support. That kind of takes away from the "full" part.
5. Youtube widget - huh? Other phones don't have "widgets" so I guess that counts. Although many phones can go to the
youtube.com (flash support)
6. Appealing package/easy ui - This is a preference. Again, I'd say Sony Erricson, Nokia, and LG had this down. Although the
iPhones was just as good/better.
And when we look at the things the iPhone lacks:
1. Picture/Video messages - Supposed to be this all-in-one media megaphone but no MMS?
2. 3G - With its wonderful browser, they neglected to use 3G (for battery reasons??).
3. Cut/Copy/Paste - A step back from normal smart-phones.
4. Flash - Supposed to be the "real internet" but no flash support?
Again, I had an iPhone but left because of poor coverage on AT&T's part, so I bought an iPod touch. I, personally, see this as some serious competition. Assuming they can cover the basics, that prototype could turn into something big.