iPhones are quite good but I would wait for the 3G version, scheduled for next year.
The current one has a few features missing as well, probably the biggest of which is the ability to film videos on the phone's camera. You also can't set mp3's as your ringtone or send MMS messages.
Personally I'm not too bothered about the MMS, but if I can't set Basket Case by Green Day as my ringtone then I don't want to know
