My personal take on iPhone is that its primary purpose was to replace the aging iPod. Today less people want to carry on multiple devices, and integrating the mobile media player (iPod) and cell phone together makes a lot of sense. On the other hand Nokia (and other cell phone manufacturers) has been doing the same in 'reverse' since they are adding media player capabilities to cell phones... (Didn't I read in some news that Nokia is actually worlds biggest portable MP3 player AND digital camera manufacturer, due to the fact that both of these functions are now part of most Nokia phones sold?) Because of that Apple had no choice but to introduce the new iPod with phone capabilities, thus the name iPhone.

And it does not end here: Today more people use mobile internet and adding the Internet capabilities to iPhone is absolutely must for that device to success... just like most advanced cell phones have.

The N800 is best defined as a mobile phone companion to provide big screen Internet end terminal to compliment mobile data plan. As it is open for third party SW developers lots of other software have been written to it and the "Internet tablet" definition is becoming more blurry...

In the end I do not see N800 and iPhone as direct competitors. The iPhone makes more sense to "general public" wanting to carry one single all-in-one device. The N800 makes more sense to people who already have nice and small (fitting in pants pocket) cell phone and do not always need to carry "Internet terminal" with them, but only when needed. I belong to the latter category...

Last note that this is MY OPINION and not trying to force you to believe the same...