The problem with it is, it's not so much what it does, or doesn't do, it's HOW it does it. After playing with plenty of phones, smart phones, and hand held PC type phones, like the XDA's, the Ipaq's, the countless Windows Mobile smart phones etc, I just personally feel nothing comes close to how well the iPhone operates. It's OS is just a JOY a use, it's navigation etc is just typical Apple - smooth as silk, and the whole thing can be summed up with the un-official Apple tagline of "It just Works"
Of course, therein lies the problem. It's geared up for the Apple world! It's designed for the Macheads that all have imacs and macbooks, and all use itunes, and have Apple TV, and use the Airport Extreme/Express, and Time Capsule etc... Which is mainly the American domestic market. The domestic market in the UK is ruled by Microsoft, and whilst I personally feel it is still a great tool, it just doesn't gel as nicely with Windows as it does with OSX! Put simply - you plug it into a Windows PC and it doesn't work - it needs drivers, software, etc. With a mac, you don't even NEED to plug it in - before you know it, it's wirelessly connected and all working as it should be!
Apple products are fantastic. The simplicity of design, the intergration of their product family to one another, the ease of userbility... Yet for some reason I STILL find myself with hree Windows computers! The only Apple product I have is my iPod, and much as I would love an iTouch, untill they make versions capable of holding 60gb, I won't have one....
So I don't need an iPhone as a music player. And I don't need it as a movie player (who wants to watch films on a screen that tiny? And i drive all day so not like I am sitting on a train for long periods) All I need from a phone is : to be able to make calls. To recieve them. To send and recieve text messages. To send and recieve picture messages. To get online when mobile, for web pages, gmail, etc etc. And the rest is just a toy - another "cool" gadget to play with and show off.
And as such I can't justify hundreds of pounds on something to use as a toy! I'd love to, but I can't! With a few more tweaks and apps, the iPhone is probably EXACTLY the phone I have been looking for.... But I just can't justify shelling out for one! I won't be using it as a business tool, or an iPod, so I'd still be carrying the phone AND my iPod. And with it's camera, I'd still be carrying my digi camera around aswell (which to be fair I do now with my Nokia as I haven't seen a phone yet that takes pictures as good as a real camera - even the N95's 5MP camera isn't a patch on my shonky 2.1MP Canon, and my 5MP camera blows it out the water and onto the next planet!)
So it's superb, it's a marvel of technology - but it still isn't quite there yet.....