yes but it's A PHONE!!!
Well there's your first misconception, it's way more than that. As for those saying people buy them because they believe the marketing hype, some may, I didn't. I bought it because it seemed to offer all the disparate devices I've owned previously in one useable package and so far it hasn't disappointed me.
I wanted a new iPod when I bought mine (outright on PAYG), my old 4 Gb wasn't big enough, so that accounted for halt the cost immediately. I can plug an iPod in in both my cars, I'd regularly forget to pick up my iPod.
I have it synced to my work calender so I've always got that with me which I never managed properly with a PDA, I've got my contacts with it set up properly and synced with my home PC (first time I've ever been motivated to do this properly). I use it occaisionally to pick up email when I'm away from a PC, don't do it often but it's been very useful, same with web access. The only device it hasn't really replaced yet is my bike GPS but I may have another go at looking at that, didn't realise you could get the maps resident on the phone and OS ,mapping at that, my fault for getting a cheap app. The camera's useful too, not as good as my stand alone camera, but then as I don't carry my main camera around much the iPhone is at least with me.
It's way more than a normal phone, if you don't get it, that may because you haven't had the chance to use one or it doesn't fit into your lifestyle, fine, no issues, but don't assume those of us with them are just sucked into the marketing. Mine has definitely made my life marginal better and for me that's been good.
I'm sure other brands of Smartphone are good too, I went iPhone because all my music was in iTunes format, it's since also proved to be very easy to use.
