I've been very pleased with my iPhone. There are a few neutral features (the typing isn't horrible after you get used to it, but it certainly doesn't replace my MacBook). Major pros and cons are as follows:

Pros:
1. VERY easy to link to my email systems vs. my Treo which was a nightmare and never worked well with my email (I finally gave up using it for email).
2. Activation was very simple and straight forward.
3. The phone is terrific ergonomically and very intuitive.
4. Favorite features:
- Good email and calendar integration including Outlook/Entourage via IMAP
- Integrates with my Apple mail and calendar programs
- Great iPod functionality... much easier to see movies and video vs. old iPod
- Good web browsing via WiFi

CONS:
1. No way to pick songs for ring tones (my old Motorola could do that)
2. No integration with my stereo bluetooth headset (my old Motorola could do that too)
3. ATT network drops an incredibly high number of calls (literally dozens every day for me, primarily in the Northeast and in Florida).
4. ATT edge is fine for receiving emails, and sending a few short emails, but you need to be connected to WiFi for web browsing or more robust email use.
5. I definitely want more storage. I'd like a 250 Gig drive, but 32 Gig in flash would be a good start. The 8 Gig drive holds a few songs, photos, and maybe two movies. I'm used to carrying my whole library on my iPod.

Bottom line: Happy I bought it overall. It is MUCH better than my Treo, but for music and phone service probably not quite equal to my Motorola KRZR.

I didn't like ATT before (I had TMobile and it was OK). I think the ATT network is the worst part of the product experience.

Would I buy it again knowing the price was going to drop $200 and that the new iPod without the phone was around the corner... Yes I would. It's been the first product I've used that actually did a decent job with email and that plus the iPod features have been the real selling points to me.

I'll probably upgrade to a new iPhone in a year or 18 months and I expect a lot of the problems will be fixed by then. It's not a perfect product, but it's the best product you can get right now for the combination of communication and entertainment that I use.

After a couple weeks of getting use to the keyboard, I'm almost as fast on it as I was on my Treo. It takes a while to get the hand of it, because it has to learn your quirks (it remembers what you regularly type) and you have to learn to trust it to correct your mis-types (which it does in a really cool way).

Despite the slower speed, all the other cool-ness makes it worthwhile. The maps are awesome. The web browsing is amazing. The visual voicemail alone is so simple, yet so brilliant. The interface is leaps and bounds ahead of anything else out there.

I think the iPhone does what the Treo did years ago: It leaped a couple generations ahead of all the competition. Too bad Treo couldn't keep up the pace.

I AM definitely bitter about the $200 surcharge for being one of their enthusiastic early adopters. Ouch. Makes me wonder if that was part of the plan all along, or, as one of my colleagues suggested, if it was a preemptive price reduction in anticipation of some forthcoming Google Phone announcements.

The iPhone is one of those rare products that actually does live up to the hype. I've had mine since the weekend they were introduced and I'm still loving it. My previous phone was a Treo and there is simply no comparison. The keyboard was frustrating at first. The learning curve is anywhere from 3 days to a week. But, once you get it, it's great. I was willing to compromise on that to get the additional screen real estate, but I no longer consider it any sort of compromise. I estimate that I type roughly twice as fast on my iPhone than I ever did on my Treo. The keyboard is going to frustrate any first time user, but don't let that initial impression scare you away. It gets better with time (much better).

Of the non phone apps, probably the #1 most often used app is Safari (the web browser). I find it quite handy even in my own home. I read the news in the morning on it with my coffee. I read articles in the evening while lying on the couch. And this despite having several computers in the house that are always on and ready to use. I never got that kind of utility out of the crippled browser on my Treo.

Email is similarly crucial. It took some tweaking to get GMail to only forward a subset of the email I receive on a daily basis (the subset that is non spam and non mailing list). Now that I've got it setup the way I like, it's terrific. Again, far better than my Treo (which I eventually stopped using for email). But, I suspect Blackberry might still have an edge here (but only a very slim one).

Google maps is indispensible when out and about. I find myself using it more and more every day. It's great if you happen to know the name of some store or restaurant and you know approximately where it is. Just pop into maps, search, click the push pin and instantly get directions or place a call. It's one of the things that amazes everyone I show it to. It's not that there aren't other phones out there that could do similar things, it's that the iPhone can do it with such efficiency and grace.

I use the iPod and photo apps heavily too (it's fantastic for sharing photos with friends). The iPod is also fantastic. I frequently use the world clock for setting alarms and timers. I sync my calendar and make appointements. I check stocks, the weather, and use the calculator from time to time. I snap photos with it when I don't have my usual camera handy. YouTube is a fun distraction every now and again. The Notes app is my least used app (though I do use it on occassion to jot down a reminder or list of some kind).

And, the great thing is that Apple appears eager to continue rolling out improvements in the software. That's something that Palm could have done with the Treo, but never really did. Other phones also just seem to push out the bare minimum in bug fixes and what not.

My one desire is for Apple to open up the iPhone to some form of third party application development. Right now, there is a lot of incredible stuff being done via Safari, but there are limits to that form of application delivery. I believe Apple will do that, I just believe they will work very hard to get it right and make a viable marketplace for those third party application developers.

Well, there just isn't much negative to say. Oh, the range on the Apple bluetooth headset isn't very good. Be prepared to return it if that's an issue for you. Otherwise, it's a nicely designed headset that's nicely integrated with the iPhone.

- Stephen

My iPhone has become indispensible. Google Maps and Safari are brilliant. The biggest drawback with the phone is the lack of cut and paste.

Email gets easier the more you use it. It becomes easier to type either with thumbs or pecking with a finger.

I have also been using Skype and using skypeforiphone.com to make international calls. It works really well.

I have even replaced the headset with a noise cancelling set of headphones, as long as you do a simple modification.

On the whole the interface is great. The menu button brings you back to the top level menu from wherever you are. For a first generation product it is well worth the money. Now with the price dropped by $200 it becomes a compelling product.

The final verdict. I use a Blackberry for work. If I am sent an email with an excel attachment or a PDF I find it easier to forward the email to my iPhone and read it there. Now if only there was a wav file player for AT&T's VOIP service and a PowerPoint viewer. Still Steve has to leave you wanting for something otherwise why else would you upgrade to the latest and greatest model!

I love my iPhone. I traded in my Treo 650 w/ Goodlink to have it, giving up access to work e-mails and such but I do not regret it at all. I believe one day it will be compatible and accepted by most corporations but I have to admit being miffed at the price drop. I understand why they did so but there was not so much as a nod to the people who put the iPhone in the news, the users and the loyal ones at that. That being said, I am not going to give Apple any more of my money for a while (my form of individual protest)

I upgraded from my walkie talkie to the iphone, it's awesome. I actually can call people that are more than 5 miles away, and I can pick who I want to talk to. The price cut is causing us some family strife right now. We had to sell three of our kids to get the iphone and it sure would be nice to have either little Jeffrey, Ben or Sammy around still. Well as Steve Jobs said, that's technology for you.

I have been using mine since the day after they came out, and while it took a bit to get configured with our exchange server, I am now getting corp email on it as well as my gmail.

I really enjoy the device - mostly because it's so easy to use and offers significant benefits over previous phones I've had.

Typing isn't bad once you get used to it. I work pretty fast at both single finger (one handed) and dual-thumbed typing. I think part of it is training the dictionary on the phone, as to words I use more often.

The surprise feature that I never thought I would care about? The Camera! Wow - I never used phone cameras before..the pictures were small, useless on my phone, and there wasn't much I could do with them off my phone either. But in a recent trip to D.C., it was a perfect supplement to the camera my wife had, as I snapped off great looking photos that I could mail directly to people's email accounts.

All in all, better than my Blackberry, my Motorola Q, and my Palm Treo. Very nice consolidated device.

wow, the comment from chris lema above was actually the first comment i've come across where someone that uses the iphone now was actually a blackberry user...and likes the iphone better. go figure!
i've been a blackberry user/ipod carrier for years now and i still don't think i'd trade carrying around my entire music library along with my phone that uses the opera mini browser for the iphone.
but i'm still waiting to read something about the iphone that my blackberry/ipod DOESN'T do...

A few of my friends have the iPhone and I have been hearing nothing but rave reviews. There are some downsides (only being able to use it through At&T, keyboard is tricky, replacing the battery is expensive) but the device is amazing. I question the price drop as much as everyone else-- it's not characteristic of Apple and could be hinting something negative-- but it made me consider buying one. I'm holding off for a year till I see what the competition can come out with.

I actually think the iTouch was a smart move. It's what people want and it gives them the mobile Safari without having to sign up with AT&T. THAT is the biggest incentive to me so far. Possible Christmas present for myself?

I was an "early adopter" and although I would have liked to pay $200 less for the iPhone, I can only say that I have gotten my $200 out of using the phone everyday. My Treo never worked and I gave up trying to do email. The web was so slow that I could never wait long enough to see a web page come up. I sold that phone as fast as I could when I bought this iPhone.

This phone is an integral part of my business day. In two months I wonder at how I ran a business without it.

Best part:
email application: I actually like reading my email better on my iphone than on outlook/entourage. I have gotten faster with two finger typing and the predictive typing is pretty amazing. It is almost like watching a magician on TV and wondering "how does he do it."PDF's and other attachments are readable and usable.
safari web browser: I use this all the time - even in EDGE. I find that it helps in meetings when I can look something up that will move a meeting forward. How does it zoom so well? I find myself wanting to tap my laptop screen to make it zoom and I am disappointed that it does not.
pictures: I use this to show high quality images to clients to show them what their project might look like. It saves time.
Google maps: this application has saved my butt a number of times looking for meetings, clients and places of interest. The direct connection to the contact list and the ability to connect from an address directly into the maps is incredible.
phone: this is the best cell phone I have ever owned. great reception and no missed calls. Visual voice mail it such a time saver.
iPod: the movies on this phone are beautiful. Most people who see a movie playing on the phone grab it out of my hand to marvel in its beauty. I had a guy lean over the back of my airplane seat and watch a movie even though he could not hear the sound. He was just amazed at the picture. TV shows are almost better than my HD tv at home.

Not so good or missing:
direct IM client
GPS in Google Maps
no copying text and pasting
no Flash in the browser

This iphone was a great deal at $599 and I do not regret it even one day. It is a steal at $399 and I am trying to convince myself not to go buy one of the cheaper ones (dollar cost averaging) just in case something happens to the first one and I would have to send it away to be repaired.