So now that Apple has released an iPod that's like the iPhone but without the cellular voice and data services, I think it may be the end of the phone exercise...
The iPod touch, with Wi-Fi, Safari and iTunes Music Store, provides what the iPhone does, without the lock in to AT&T.
Had the iPod touch been launched with the iPhone or before, then we wouldn't see all that rage on the device.
The main problem with the iPhone is its lock to an old and slow generation of cellular data network (EGDE)...