Jason Kottke did a great round-up on the iPhone and made some great points.
I too think it looks great but won't buy one for two reasons - one, it's out of my budget right now and two, I don't want to buy something early on until they come out with a second or third version.
*drool* Hubby and I both want one! I think we'll wait for them to be out for a while. The first generation of anything is bound to have some bugs. Hopefully the second generation will be cheaper and work better. That said, we'll see if we can control ourselves when it comes out.