The summary of the iPhone's features is actually rather negative.
I think the problem for most people is the cost of the device... Apple somehow think they have the right to rip people off just because of the brand... and people seem to be wise going by tonights impressive sales of 1 unit at the CPW in Cheshire Oaks.
Its doomed from the outset, unless the pricing is severely reduced. True, its a nice device, but one can get nice devices very similar off eBay.
One of the major problems with the iPhone which has been widely publicised, is the call quality, or rather lack of it. By skipping the refinement of this aspect of the phone, they have missed the most fundamental part of any mobile phone, and the fact that someone can get better quality from a 5 year old device, shows how lacklustre the phone is.
Its missed out on a lot of modern technologies, Apple are demanding an extreme price, for a device is full of technology from days gone by.
The touchscreen is the only selling point, other then the design, and that is old technology, the only reason manufacturers havent taken it to the mass market, is not because of technology or cost, but because of practicality. Keys are just so much better in most scenarios.
The iPhone has been critisized for being touch screen only, and not providing enough feel when typing.
As Sony are worried somewhat with their P1i, over time, touchscreen devices wear out and begin to fail, especially with finger operated ones. This is another many manufacturers have been very reluctant to use them, and where they are in use, the manufacturers rather you use a stylus then your fingers, although they are quite uable with your fingers.
Id rather have a iPod Touch 16GB for cheaper, and a free N95/P1i etc on a better value, shorter term contract, whereby the phone is actually mine, and not in reality the property of Apple.