I have a battered old Nokia N95 and I'm very much in the market for a new phone - the front runners being the SE Xperia X10 and an iPhone. Aware of what may happen in the next few days, I've gone into my local Apple store a couple of times and played around with a 3GS. I've never had an iPhone or indeed operated one until earlier this week. I was very impressed with the smoothness and speed of the menus and I thought it was in just about every way superior to my current phone *apart* from the camera technology and, yes I know it's Apple, the price (I already own two Apple computers so I know they are not the cheapest).
The back camera is well below even my old N95 and video samples from the SE Vivaz (much cheaper than the iPhone) are in HD and are surprisingly good.
As has been mentioned numerous times, there is also no flash attached to the iPhone.
I know many people do not really see a need for a front facing camera and indeed I don't really use my N95 front facing camera terribly much but I have done so on the odd occasion in the two years of ownership and I would like the option of one on an iPhone.
I say all of this purely because I am not *yet* an iPhone convert but very much interested in becoming one. I love almost everything about it apart from the the price and the (lack of) camera technology.