I love my iPhone. True, I do wish at times that I could get and forward pics with text messages but whoopdee-do. OS 3.0 will fix that and include cut and paste and I can wait till that happens. Email, safari, iPod more than make up for it. I sort of regret not spending another 100 bucks and getting the 16GB model.
The camera on this phone is unbelievable.
My fav APPs include stocks, maps, weather, Yo Mama, iBeer, Moviefone, Carpenter, Fastlane, Yelp, TMZ, Zippo Lighter, flashlight, Whitenoise, and I think my new favorite will be MLB.com with instant scoring updates from all of baseball.
My only real complaint would be battery life.