We liked:
- the beautiful design/screen;
- the user interface: you use your fingers to scroll through the screen, zoom in and out of a page... it takes a few minutes to get used to it and then if feels really natural... I wish my laptop/pda could do this!
- the fact that it has a Wi-Fi connection;
- the quality of the video playback;
- the iPod functionality... although it's more of a nice to have feature than something absolutely necessary... I already have an iPod!

We didn't like: - the keyboard was hard to use, despite "thin" fingers and the auto-correction feature; - no Flash support on the Safari Internet browser.

I think the keyboard thinggy is the main reason why I wouldn't want an iPhone today. But, perhaps I'm not the target audience neither... one that would have $500 to spend on a cell phone and that can type short messages faster than they can speak! Also, we haven't tried the phone side of the iPhone... I guess there's not much to brag about that anyway... ok, apart from the graphical voicemail... greaaat!