its neat, and has lots of features. However, the price is high, and its limited to cingular. If you look at the cost of Razr (really popular at $99) and Nano at $250, you can get this in an all in one combo iPhone for $200 more. Now I think alot of people might pay that extra money for the convenience of an all in one device that also has smart phone features.
However, the fact is that many people are locked into current 2 year contracts with carriers other than cingular. How many of them will change to get out of it with another $150 on top of it.
My kids both have razr and nano. We are verizon family plan. I already spent a bunch on their equipment. I am not about chuck the $700 I spent on 2 sets of ipods and phones , then a termination fee, then put them on a new plan that will cost me more since its not a family plan. Oh yeah, and it will now cost me to call them, since they are not part of my network.
What I am saying is that while I think the iPhone is a really nice piece of technology, and it has definitely set the bar for smart phones, because of price and carrier, the rate of adoption might be slower than anticipated.
What I am hoping is that this lights a fire under Palm, and ideas that the engineers and marketeers have had that might be supressed by management get to bloom, and we see Treos that are slimmer, with features that we have been asking for on this forum. If Palm doesn't respond to this quickly, then they will deserve the desertion they will get.