Ok, so I don't have an iPhone so I totally don't have the right to give it my review, but I can still have an opinion.
Basically from the vast reviews I've read, I think that overall it works very well, and all in all, as advertised. As for this insane hype around it, I agree with [http://leoville.com Leo} on this one, that basically everyone hates their phone for the most part. It's awkward to use, the screen sucks, and they wish they didn't have to carry their iPod AND cell phone at the same time. This sums everything up into one device, and everybody went banana's over it.
In regards to these little software annoyances. (eg. Keyboard can't go landscape 'cept in Safari; Mail app sucks, Bluetooth is headset only, No Flash/Java) are…just that. Software annoyances, that most probably will be upgraded as time goes on. We know they will actually push out software updates, because they kept their word for Apple TV and delivered YouTube as a bonus.
Of course the question is, "Am I buying one?" and for now the answer stays no.
- Doesn't work in Canada (yet, and some have shown ways to circumvent that. I still need a phone though ;-))
- Apple is literally pocketing almost double the actual price of device, which means as they get less greedy and they sell more of them, prices have to go down. Plus like the iPod I can see there being an iPhone Mini (don't know about the iPhone shuffle though!)
Some of my other complaints such as lack of video recording on the camera, and other features are upgradeable and I see Apple updating the firmware very soon.