Excellent analogy.
It was the same thing with an iPod. There were other solutions out there (I have a 20 Gig Archos Jukebox whose battery lasted through 5 generations of iPod - and are replaceable) - it was the cool factor.
But cool isn't just perception - it's slick controls, intuitive user interface and tight programming. These are all things that WinCE devices lack and Palm had to a less extent.
This thing really is iPod + Cell Phone + Mac mini. Most folks are ignoring the Bluetooth and WiFi and Edge capabilities of this - or the touchscreen UI.
Definitely a slick machine. Would that they were working with Verizon instead (the only one whose reception I really get.)
As always, it's not that it's new, it's the integration and presentation.
Watch the videos on the site and try not to be impressed. Go ahead.
I just don't get the exclusive tie to Cingular. I know Cingular paid out huge cash to get the deal but Apple will not have access to a large portion of the market. Honestly, the phone is the least interesting piece to me. I would love to have the device with everything except the phone. i would buy that now. With the tie to Cingular I will not.