WALT MOSSBERG TRIED THE IPHONE FOR TWO WEEKS and liked it pretty well. And to my surprise, the lack of tactile feedback didn't matter to him: "The iPhone's most controversial feature, the omission of a physical keyboard in favor of a virtual keyboard on the screen, turned out in our tests to be a nonissue, despite our deep initial skepticism. After five days of use, Walt -- who did most of the testing for this review -- was able to type on it as quickly and accurately as he could on the Palm Treo he has used for years."
On the other hand, there's a major drawback: you're stuck with AT&T cell service.