I saw the pictures in the paper and heard about the launch of this device, but hadn't looked into it until now. All I can say is, "I've finally found the 'smart phone' I've been looking for".
I'm "that guy" who actually doesn't like the original iPod interface. I've fought the iPod trend since its release as I just like other MP3 player interfaces better. However, I do think it's great that the iPod has led to the acceptance of digital music (and later, video) by the general, non-tech, population. The iPhone interface has finally convinced me of Apple's design innovation.
In my search to find a device to replace my cell phone, PocketPC, and MP3 player and add portable video functionality with one "convergent" device, I was close to buying an iMate JASJAM. After seeing the revolutionary user interface and power of Apple's new iPhone, all I can say is, "I need this, NOW!". I haven't been much of an Apple band-wagon jumper-on-er, but lately, they've been doing some very innovative things that make me think twice.
Think of what they could do if only they had .NET... (sorry, Mono doesn't count ;) )