iPhone - iPod with Phone or True PDA
It seems to me that simple cut & paste is an essential feature for an electronic device, so that you can cut a segment of a response to an email to a customer without having to include the entire email thread (which may be sensitive) or retype the response in its entirety yourself. Apple practically invented the graphical user interface. They should appreciate the importance of this feature better than anyone else. And anyone else does in fact provide this basic feature.
Being able to sync notes you may have type on important calls you've had with customers while in the office so you can refer to them while traveling on the road is also an essential feature so that you stay up to date and informed on where you left off on what needs to be done next. Sure, you can do without it, but the job of a PDA is to simplify and automate your work and your life.
I don't know what business you're in, but my colleagues and I all require quick and efficient contact lookups, cut & paste of relevant information, synchronization of what's on our office computers to what's on our PDA, and the ability to send attachments of important files while away from the office. To me this is just table stakes. Other PDA's offer these features (Blackberry, Palm, etc.). It just seems to me to either be a gross oversight by Apple not to, or this isn't their target market.
Is iPhone really nothing more than an iPod with an integrated phone?