24 hours after the iPhone was released to the public I stopped by the local AT&T store to have a closer look myself. They had sold out of the allocated initial batch the night before but had 2 more to touch and play with. I was actually quite surprised that I easily could get my hands on one, as I expected more folks in the store prior to arriving. I played with it for about 15 minutes and at the end actually felt more comfortable with the touchscreen keyboard. The trick is to turn the iPhone sideways as it gives you a bigger keyboard. :-)
The iPhone seems very impressive indeed, but I am still not sure if I truly need one.