I was simply impressed with the innovation that went into iPhone and I was carried away by the coolness wave. But, I asked myself "is this product that great that I am willing to spend $500" ... and my conclusion is "not really or not yet" because of the following reasons.
30GB memory on my iPod is no match with the 4 or 8 GB on iPhone. Support for office tools like word, xls, ppt, etc. was not obvious .. if all I wanted to do was view photos & videos and listen to music then iPhone seemed great, but that is not enough. Since it support OS X I am sure it does support some office type funcionility, but 4GB memory is not enough to the job done. I am not sure about the battery life either. So, after succefully riding the coolness wave for a day or so .. the reality bullet hit me hard and I am not ready to shell out 500$ on this phone as yet.