When they first came-out, iPhones were a game changer.
Since then AT&T service has gotten worse, other phone companies have gotten better and other hand held units (i.e. Droid) have gained a lot of ground.
My GF (virtually wife) got a droid and it's pretty impressive. Now it still wasn't as ready to go out of the box as an iPhone was, but it's list of apps and features were impressive. I'm gonna switch to a Droid X after they've been out a few days.