"Is it perfect? No. Is it the best phone available? Yes."4.5 starson by cnet.aaron
Pros: The features, with all the amazing apps available make this the the most functional device I've ever used. I used to be the guy who never left home with out his laptop, but no more. I can do everything I need to from anywhere with cell service.
Cons: Locked to AT&T. This is the true downfall of the iPhone. AT&T's network is poor, their customer service lacking, and their usage restrictions ridiculous (though they do appear to be easing up on the last bit).
Summary: Ease of use and endless added functionality through the app store make this device the king of all smartphones. Some phones have better camera, or a flash, but none have the complete package the iPhone offers.
The BlackBerry Pearl 8100 I used before the first iPhone (i'm on my second now) seems quaint in comparison. I simply can't image using any other phone, now or in the future.
Unfortunately, without a decent amount of technical knowledge it's difficult for the average user to get around the carrier lock in (as they intend).
When carrier exclusivity ends, this phone will takeover the same way the iPod did with music players.