Pammy's hott!
I agree, there is nothing groundbreaking in the iPhone, but I do think it is very well done, and no one markets and hypes quite as good as Apple. What they have done is created market acceptance for a touch device with no buttons or stylus. I have had touch screen devices (Palm and WM and UIQ) and am quite happy to have a non touch screen.
But, I dont think I am in the demographics that Apples markets to.