Even though the Ipod has gone down in price and it has some incredible features, the fact that most are forced to sign up for what I feel are very expensive data plans without many discounts makes me wonder whether it is more for those who have a lot of cash left for discretionary spending.
The scariest part of the Iphone is its capacity to download cool apps that at first may seem rather affordable either free or at $9.99 each, but it is much like Itunes and Ipods for some, the convenience of downloading song at just $.99 a track makes people think that they are getting a relative bargain for the convenience....but how someone else I know who used to hate Apple said, "Itunes is terrible, these .99 cent tracks seem affordable at first but I did not realized that I bought about $500 worth of songs that I really DO NOT OWN."
All of these things will be phenomenal for Apple in the long term but terrible for the consumer who does not have tight control of their wishes and wants.

PS: Buddy, I can switch out of my beat up BlackJack with weird screen defect, but for what is worth, it has served me well and has been my beating phone for the past 2 years. I think I will keep it until it reaches telephone heaven.