iPhone
I was at the mall with my wife this weekend. We make a quick stop at the Apple Store there, where I had the opportunity to try an iPhone. I've been skeptical of how much the iPhone can do in the past, but I was actually very impressed. I thought it was a pretty good balance of cell phone, PDA, and media player. I'm not even gonna rag on the price: if you are someone who already carries at least two of the three the price is very reasonable. $300 for an iPod + $50-100 for a cell phone isn't that far from the iPhone's price, and you get the PDA functionality and convenience of only having one device in your pocket (plus always having both) thrown in.
I do have three complaints, though:
1) The storage space is large enough for PDA or iPod, but not both at once.
2) The battery could last a little longer and be easier to change. Sure, the idea is that you plug it in to your computer every night so you always start with a full charge every day, but I'd easy put up with a slightly bigger device to have the storage and power issues addressed.
3) As a programmer, I really want to be able to do more to program the device than just web apps. I understand why they had to lock that out, though. Because it's also an iPod they can't let you run your own programs, or you could very easily bypass their DRM.
I have an old iPaq that I rarely use anymore. I have to say, the iPhone can't do anymore than I could with my iPaq after putting an 8Gb SD card in, aside from make phone calls and surf web pages anywhere. I think that is their biggest innovation-- convincing a cellular provider to offer a decent rate on web access. I don't think I'd pay $20/mo to add web access to my cell phone, but if I had an iPhone size screen and it was only $10 to add access for every phone on my account (wife + eventually daughter), I might jump the next time we're getting new phones anyway.