A friend of mine and I went to the Boulder Apple store around 5:45 and got in line. We were number 165 (out of say 250) by the time the doors opened. We were inside the store buying our iPhones by about 6:30 and we were all set about 10 minutes after that.
Incredible! The look, the feel, the behavior, the responsiveness, the screen, the design, the speed, the applications, the finger driven user interface, the stability, the network speed (over Wi-fi), are all just amazing. I'm utterly impressed.
The soft keyboard. I was a doubter from the start, but I suspect I'll be a firm believer before long. I'll miss my tactile feedback keyboard on my Treo 680, but giving it up for the insanely beautiful design of the iPhone is a no brainer. I'm finding I'm already used to the soft keyboard, and the deduction algorithm is incredibly powerful (the thing that corrects my typing mistakes). I'm just a little slower at typing on the iPhone than I am on my Treo 680, and I suspect that speed gap will close to nada in the near future.
It hooked right up to my personal IMAP email account, and my work Exchange server account.
The voicemail handling is roughly 20 years overdue. You no longer dial a retrieval number (even if it is a single button push) to get your voicemail. Instead, you manage your voicemail just like email; in parallel. You no longer listen to goofy voicemail menus (press 1 for blah blah blah), rather you just select the voicemail you want to listen to and voila, you're listening to it; what a concept.