Being a Mac "fan boy" (I'm not 100% a fan boy, I currently use a windows computer, but I do got love for Apple products.) I bought the iPhone the week it came out. When I bought it it was $599, but due to demand and the fact that most people cannot afford a $600 phone they dropped it to $399. Lets do some pros and cons.
~ Screen size
~ Multi- touch
~ Internet Browser
~ 2.0MP Camera
~ Web applications
~ Headphone jack
There are more of both but those are the basics, Lets start with the keyboard.
Now I personally don't have a problem with the keyboard, but some people might. The keys are fairly close together, so you might hit more then one at the same time. Another reason I think people will have a problem with the keyboard is because they cannot trust a "computer" to fix their spelling mistakes. Now I can type very fast on the iPhone, but its because I trust it to fix my mistakes. Ill give an example:
I open a new note in notepad, I type iPhone review, but I accidentally spell it rwbiew. Now on a computer when your type you will automatically go back and fix it, on the iPhone you don't have too. All I did was press the space bar and boom rwbiew changed too review.
The reception on this phone is AMAZING! All thought the city I get reception, even when I'm in basements or large buildings (I got reception in a closed stadium the other day, something that was not possible on my previous phones). Also the other day I was driving across New York and we had to go through many deep valleys, again where I lost reception but remained connected for the whole ride! I was impressed with AT&T's coverage.
The iPhone has a beautiful 3.5", very high resolution (480x320), multi- touch display. The only problem I have with the display is if I'm watching a movie in a dark room it tends to seem washed out in dark scenes. Also sometimes the fingerprints can be very noticeable (but its no problem because you can just wipe it on your shirt).
I basically have to charge the iPhone everyday, but battery like is very good. You get something like 8 hours talk time, 250 hours standby, 7 hours video, 24 hours audio. Which is way better then my razr where standby is literally 24 hours.
This phone is amazingly durable. The screen is practically scratch resistant (optical grade glass, can basically only be scratched by sand and diamonds). I've also only dropped it once from waist height and nothing happened to it at all (partially thanks to the case (rubber incase variety)). The only problem I really have with it is the occasional software bug and an occasional hic- up that causes you to have to restart.
The iPod feature works exactly as it should, it plays your music. The interface is very nice, its very easy to navigate. Cover flow is very nice but I hardly ever use it as it takes longer to find the song/ CD your looking for since I know them by name not what the cover looks like. Also the "Double Tap" of the home button is also a nice feature as it brings up a "mini- player" that lets you pause/ play the song skip ahead or backward without having to open up the actual app.
Safari (internet browser.)/ Mail.app
This works exactly as it should. The only problem with it is if you open a page that is too large it could cause the browser to crash and sets it back to a pervious time (which means you may loose the page you were trying to load). Also in Mail.app, sometimes it wont download the email from the server so you cannot read it (usually if there is a large attachment within the email.)
Speaker/ Headphone jack:
The speaker can get very loud. But the louder you go the more distorted the music becomes. Also with the headphone jack, finding ones that fit are a very rare. You people with the shure headphones are going to have problems because without an adapter, their not going to fit.
One final pro is the fact that there are thousands of people developing web based applications. This means that there is going to be thousands of games, news readers, chat services, etc.