I had a Samsung sidekick I for about 1.9 years and it was slowly dying with sporadic dropped called or even having the phone shut down during conversations. So, I passed by the AT&T store to check the deal with the Iphone. It took me around 30 minutes to get all the parts, including AppleCare. While I do not believe in buying extra insurance, I did feel it worth it especially for such expensive device ($199 in an age of free cellphones, is expensive in my books.)
Going back to the device, while I have seen many Iphones especially the MKI, it is one thing to see it in action in other person's possession than having you own.
Youtube, which looks like junk within regular computer experience, actually is very speedy and jitter free in the Iphone. The newer model also sports speakers which seem to be louder than the ones in my old PB G4 12." The quality of the video, especially in the cinema or widescreen mode is eminently watchable, especially if you are going somewhere.
Furthermore, the apps are simply amazing. While many are for sale, many are free. Pandora streaming is unbelievable, search artists and it gives you entire listenable tracks as well as similar type of artists from the original request. The streaming is extremely smooth and I wonder whether apps like this are what is giving AT&T and its network problems with overextended use and drop outs.
The clarity and sharpness of the screen is commendable. Makes my former cellphones look like stoneage devices in comparison to the Iphone.
What is amazing about the Iphone is the smoothness of the OSX...being that it is OSX and not Windows Mobile, one of the WORST OS I have ever experienced, especially in terms of glitchness and awkwardness of execution.
The Ipod aspect of the device also hold pleasant surprises. The visual based menus and touch interaction seems to distance it light years to the future than previous Ipods.
So, there is what I experienced so far. A revolutionary way of doing smartphones and internetting along with the latest tactile MP3 player experience, all for the price of other more lamer smartphones.

PS: This little device hold so many variables that I am sure to spend the next couple of weeks tweaking with it to personalize it to my tastes and internet tendencies.
Paul K.