iPhone and iTouch is a platform and not just a phone and PDA
The hardware can update, the specs can update but having the best phone OS and software is a critical and I belive that the iPhone is way ahead.
The SDK is not even out for anyone but Apple's select developers, yet developers have developed 100's of apps for jailBroken iPhones and iTouchs. I believe this is the next Palm movement.
Apps that I have used include the following, I have just gotten started >
1. NES emulator with 200 working games, that I enjoy to play... really
2. Everything converter, live updated currency, measurement
3. iRadio - all of shoutcast's streaming radio stations on your iPhone
4. Jiggy - make iPhone programs with nothing but a web browser on your computer, the complier is on the phone
5. weDict - a open dictonary app
6. 'chat' open Chat programs to bypass SMS
7. file browsers
8. web servers
9. unix terminal
10. orb portal to connect iPhone to winamp remote
11. locations, a webcam app with director of webcams and random search
12. widget, use Mac OS widgets on your iPhone
... and lots of silly games and UI tweak proggies.
And the real magic is that you install all of these on the phone with the click of a button and no PC needed.
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