i am buying a iphone.
right now, i have a phone, and a 20gb ipod which is only 4gb full, which i carry around with me everyday.
so combining the 2 is great for me. the 2 mega pixel camera doesn't worry me, as i have a 5 mega pixel camera i can take out when i need to, which isn't very often, and if i look on my current phone, i have about 2 pictures.
it all depends on what you want in a phone. the iphone looks great and has some great features like youtube and safari. however if you need a business type phone, which has practically everything you could ever want in a phone, go for the 8gb nokia n95. it might look as nice as the iphone, but it certainly does alot more, and is certainly alot cheaper.