Two different animals I say.

I believe the iPhone is yet another device developed to generate revenue for Apple. Simple azat.
It will provide features that will lead the user to con$umable information from the makers revenue stream.

The N800 was presented in just the opposite way IMHO. Nokia has given us an amazing collection of hardware for a reasonable price with no more expectations from it's users other than to... go and figure out what you can do with it.

If anything the iPhone may steer more users toward an Internet Tablet once they see the value in portable web surfing.

The differences in screen resolutions between the two devices are like the differences between cotton and silk. Both fabrics can be died the exact same color but that color will have more depth and look much more vibrant on silk.