I had reservations about this phone when it first came out, primarily because of the network (wifi/EDGE), and the focus on high bandwidth applications in apple's commercials. At the time it seemed likely the device would be cool when you're at a hotspot, but little more than a music player when you were away from one.
In the time since several people I know have purchased iphones, and I have spent time looking at the alternative 'feature' phones available. The two most compelling options to me were the Helio Ocean, which I have tried to like because of its 3G network, and the Nokia N95 - I also considered the Sony P1i (I am a long time P-series user, having owned the P800i, P910i, P990i), but dismissed it due to its smaller screen, and still a lack of EDGE support. The Ocean phone seems great on paper, there is an entire page dedicated to how it is better than the iphone on Helio's website, and I came close to ordering one online - I am very glad, after handling one at length (perhaps 30 minutes) I decided to do the research in person first. The phone feels very cheap, it is thick, and the screen is horrible. The Nokia N95 seems to be about on par with the iphone regarding main features, and if it were possible to put it on a 3G network, as in Europe, it would be the clear winner - wifi, 3G, GPS, impressive camera phone with high resolution video, nice interface, etc. - unfortunately there is no 3G network here in the United States, so it would be, just like the iphone, stuck on EDGE and wifi. The GPS feature is nice, but I already have navigation installed in my nsx, so the advantages are primarily its camera and video functionality, which are superior. This is where I was in my phone decision a few days ago - wanting to like the Helio Ocean, but being disappointed in the physical device, and being evenly torn between the Nokia N95 and the apple iphone. The price was the same, at around $550 for the N95, and $500 for the iphone, but the apple phone required a contact extension, something I prefer to avoid.
Then came the price break. At $299 there are no other phones that come close to the functionality, ease of use, and convenience of the iphone. Both of my cars are prewired for ipod music, so the phone will integrate into my stereo. I can eliminate one of the two docks at my computer (one for sony phones, one for ipod), and (as compared to my current Sony P990i smartphone) I will be able to access EDGE data when I am away from hotspots. The Nokia is *probably* a better phone, I was unable to find one to use locally, so I can only comment on online reviews between the two phones, but the price difference of $550 vs $299 made the apple phone the clear winner. It should also be possible to obtain a rebate with an extension of my cingular contract, which could make the iphone $99, or even free.
I have long used feature packed phones designed to thrive on 3G networks, instead using GPRS data and regular cingular GSM here in the United States. This lack of connection speed has been very annoying, and the integration of wifi into the P990i, while welcome, wasn't the revolution I had been hoping for. I am still waiting for widespread high speed 3G data, but, in the meantime, the iphone seems to have proven itself as a decent option, and the inclusion of EDGE will serve as a bandaid in between hotspots. For extreme business users the iphone strikes me as more of a feature phone, rather than a smartphone - by this I mean a PDA phone, such as a treo, Sony P1i, etc. will have a more-powerful scheduler application, and will be designed to integrate with your various security systems for email, remote access etc. But for casual business use, eg if you're not setting up 20 appointments a day, you're not filing reminders for call backs, etc., you're not accessing your desktop remotely over your phone, then the iphone will offer a slimmer, better looking device that will allow you to leave your ipod at home, and has a slick UI.