I've said it before but the screen is unbelievable. It is far clearer than any other small-device screen I have ever seen, and most of all it is easily readable in just about any lighting condition. My RAZR was unusable outdoors or in bright light. My Treo was pretty good but was sometimes washed out in direct sunlight. The iPhone somehow manages to be readable all the time. Fantastic!
The web & email setup is really great. Super easy to use, and it just works. Setup is a breeze, and the phone automatically jumps onto WiFi networks when available so you get the fastest speed possible.
I've never had a video iPod, so having movies in my pocket is pretty cool. Not very practical, but pretty cool all the same. If I had a long train ride to work everyday or something, this would be awesome.
The built-in camera is not great. The iPhone group on Flickr has some really good shots, but I've yet to take any that blow me away. There's no flash, so getting good lighting is key. On the other hand, at 2MP it's about 1.7MP better than my Treo so it has potential. I'll keep trying.
There are a bunch of "hey, that's cool!" features and design elements that I keep discovering. It's really the little things that make this one of the most well thought out phones ever. Even at it's current version 1.0.1. If you have more than one contact with the same phone number (same home #, for example) the caller-ID when they call shows you a hybrid of the names. "John or Jane Doe", for example. If the caller is not in your contacts list, the caller-ID shows you the geographic location based on their area code, e.g. "Southern Los Angeles". If you dial a number manually using the keypad, and it matches one already in your contact list, it shows you the name of the person before you hit "Send". It even does the "hybrid" thing if it's a duplicate number.
It's the little touches like this that really do it for me. I know most people don't care about this type of stuff, but these are the kinds of things that are so obvious you wonder why every phone doesn't do them. Along with all the other subtle (and not so subtle) animations and cool little user interface bits, there is really no other phone like this on the market today. And yes, I got mine for free, but I would have gladly paid full price for it and a week in I don't think I would have regretted it.
And no, I'm not the ultimate Apple fan-boy, there are some problems. There should be a way to email a full-size photo, not just a scaled-down version. Needs iChat (instant messaging). Needs custom ring tones (although the old-style "K-uger" car horn I have assigned to Tara is funny). Other things I can't think of. All this and more will likely be fixed in future software updates, which, by the way, are also drop-dead simple.
Overall, I'm giving it a thumbs-up for the purposes of this review. I can't put it down, and everybody who sees it for the first time wants one, so I guess it's going to be a success no matter what my review says. :)