I broke down and joined the herd this Christmas - bought myself an iPhone. It is, without a doubt, one of the most amazing devices I have ever used. I don't say that lightly. It's not perfect, but it is incredible, especially for 'gen 1'. I could wax poetic about the thing all day, but as a *long* time user of PDA's and smartphones (Palm's, PocketPC's/WM5-6, Treos, HTC's, Psion's, Zauruses, etc), the iPhone is the best I've ever used.
The 8GB (or 16GB on the 'big' Touch) is a bit limiting, but we will see higher capacity versions of both the Touch and the iPhone within the first 6 months of this year. They are coming.
My 80GB iPod Classic will remain my core music player (my entire music collection is about 30GB). The main reason for me is that my Audio Line Out dock to my headphone amp works with it, and it doesn't on the iPhone because Apple changed the pinouts.
