My feeling is that it is boutique for now, much the way the iPod was.
But they have built a great platform for certain kinds of
applications.
1. It is OSX - so if you write widgets for OSX you can write them for the phone
2. They have some very popular desktop apps that integrate well with
the phone - iTunes being the prime candidate
3. It has great convergence. I currently have a treo to try and get
convergence, but it's abilty to play music is generally pretty crappy.
With the iPhone I would be in good shape for most of the things I
currently want to carry in my pocket (other than keys and a wallet).
So it is almost Unix like in that it chains together a bunch of good
apps into one location.
Even if GPS is not there now it will be eventually.
The biggest bummers for me are price (but I feel the same way about
iPods) and Cingular, who I despise.

I am more interested in how this plays out in the 2 to 3 year time
frame and how it spurs the other crappy solutions to get better...
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