I got a chance to spend more than an hour with an iPhone last week. I travel a bit and need to check email and occasionally look up stuff on the net. I also like to listen to Rush podcasts on planes or on long drives. I travel as light as possible. I would love to leave the laptop behind on many of these trips. I also hate the fact that around 3:30 - 4:00 I start looking for a WiFi hot spot and I am not crazy about needing to get a one day (or less) connection pass for up to $10 at most airports (thank God for RSW).
I was hoping iPhone could fit the bill. However, the fact that it is missing iTunes means I still need to drag the laptop and look for WiFi. iTunes (and slightly more capacity) would make this work for me.