I just saw this video and now I have to ask the question. It really makes no sense at all if you think about it, I mean this is suppose to be the best phone in the world...right!?
http://www.youtube.com/watch?v=ggD3Hr1rVyA
There isn't a logical one other than Apple determined on their own that nobody needed one. Doesn't matter if the average consumer felt otherwise. In all seriousness, Apple would rather have the consumer pay $100 more for twice the memory capacity (16 Gb vs 32 Gb).
If you think about it, the iPod doesn't have a memory card slot. You can't even change your own battery. Apple would rather have you send it in to have the battery changed, or better yet, replace the entire unit. That's exactly what they're doing with the iPhone.
There are people that like it, and it's fine with me. I personally think the phone is overrated. I'll stick with my regular phone, as that's what I use it for, to make calls.
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