Well now for a comment that doesn't just make fun of the price tag.
I did in fact stand in the line on the day they came out to get one with a friend. We were going to split the price of the 4GB, and it was his graduation gift from me (I owe him for 4 years of bailing my arse out of various things). Anyway.... so we buy the thing, and get it out of the box to try it out. Initially we are impressed by the high res, and very bright screen. Its also very scratch resistant. We took a key to it, and it took quite a bit of pressure to get a small scratch. The back is as easy as an iPod though. We then brought it home synced it to his MacBook Pro, and got to testing. For most things that say a Samgsung BlackJack (apparently the closest thing to the iPhone) can do it works well. App switching between say the calender, and the address book, then to the internet browser are fairly seamless, though I don't like the fact that you always have to go through the home screen, I would prefer the start menu of a WM5 phone. After doing some basic stuff, we really started stressing it out. The accelerometers that control going from list to cover flow in the iPod are slow, and the transition is choppy. Then there is the whole movie thing. Again transitions are slow and choppy, and going from the movie to the home screen the first time was very lagged. Then there was the internet. Google maps was okay. Usable in a pinch, but I wouldn't use it all the time. Safari was again ok. The phone is only a 2G, so when on AT&T's EDGE network its like pulling teeth to bring up anything flash heavy like apple.com or dell.com Finally there is the keyboard, and OMFG!!!!!

I hate that damn thing. I wish they would have done a slide out like on the T-Mobile MDA, its just a keyboard, so its not like their killing their "Never needing to have another button" thing, but seriously unless you have small fingers, you just cant type at all, and even then you are reduced to hunt and peck due to the fact that you can't thumb type like the MDA. It makes SMS and typing in anything slow and painful. I will give the phone the fact that it has WiFi which helps the internet speed, but the bluetooth is suck. Though its BT 2.0, it doesn't have A2DP thus you cannot use a set of stereo headphones to listen to the iPod.
Overall it is a great idea, and according to Apple they just wanted to pave the way and set the standard, but if this is what I can expect from future phones, for one thing I am going to get a stylus surgically implanted in my index finger.
Oh yea, and the call quality, I will take my Sony K800 or Moto RAZR V3i over it any day. Using a BT headset helps a heck of a lot, but through the mic and speaker on the phone, calls FTL.
Cheers
Cameron