The iphone does have a touch screen. And the biggest the iphone has is 8 gb, so it could easily compete with the iphones flash memory. For it to be a iphone killer so to speak I think they'd have to make a better interface, and applications. Right now no third party applications can be installed on the iphone. What you get out of the box is it. That's why I love the internet tablets. I use it for everything from playing my old scumvm games, surfing on the couch, and watching movies on the road or listening to music while driving. Some of which I could still do with it out of the box, but do better with third party applications (I much prefer using kagu for music, and canola for movies)

Apple claims the reason they aren't allowing third party applications to be installed is because it could easily crash the network. Hopefully nokia finds some loop hole that could allow it to be open source. Other wise it might just be another fancy phone on the market that might not do somethings better or worse then the iphone.

Also a lilttle off topic but the minione is suppose to be coming out later this year (every where on the web i"ve looked says the release date is q4) and is suppose to also be a potential iphone killer. More info on it can be found here. http://www.engadget.com/tag/minione