By the time I left the Apple Store Bayshore in Milwaukee, WI there was no line anymore. This is a brand new Apple Store that just opened tonight at 6pm to coincide with the iPhone's launch. I left the store at about 7:30pm.
I had predicted to my friends and family that there would be plenty of iPhones for everyone, and I was right. This doesn't mean that demand is lower than expected, just that Apple finally had enough product on the shelves for a major product introduction.