No matter what I will not buy one. It will be great for it to shake up the market, that always leads to innovation. The iPhone is the perfect example- there are tons of clones either already out or on the way. Or even the iPod (never owned that either, adopted MP3 format back in 1999 and haven't used anything but)
Apple was smart to come out with an iPod Phone (iPhone) as they knew that complete convergence is around the corner and dedicated music players are becoming obsolete. Therefore, they HAVE to go along with the "smartphone" theme. Being first didn't hurt either (even though many devices before it did the same things, but not for the "average" user.) Apple will steadily lose ground to more open systems and neverending competition from many manufacturers. The game of mobile performance has already begun.
Either they will open up their software and do more to make the devices more powerful and versatile (removable battery, anyone?) or they will die out slowly similar to AOL, remember them? The only game in town always goes bust in the end.
I just have no love for closed systems with DRM-crippled music options and no way to cut-and-paste or save properly. Sorry this post is pessimistic towards Apple, but I feel the same way about Windows even though I use or administer it on more PCs and servers than I can count.