Well, as much as I think this would be a cool thing to have, I couldn't resist posting this image from The Onion. 
One of the major downside's to this device is its carrier restrictions, i.e., AT&T. For many of my friends, AT&T/Cingular are the worst mobile phone service providers they have ever experienced. Perhaps the next iterations of the iPhone will allow users more service options (assuming there will be many iterations of this snappy device).
Sometimes when I think of the new product releases from Apple, I am reminded of the Newton. Yet given the track record and success of the iPod, perhaps this device will deliver on its promises. Then again, we'll all have to wait and see!
Comments
I've been with Cingular (now AT&T) for nearly 4 years. I hate cell phone companies as much as the next guy, but at least in the southeast (where I have lots of data), the coverage is pretty good. And the previously bad section of Interstate 59 didn't have any dropouts this weekend. I wonder whether they only recently combined their networks.
My biggest concern is that there's apparently no development kit, and of course they'll have 6 different proprietary cables, and each model (assuming there will be many iterations) will capriciously change to a different "standard." (To be fair, though, iPods have had only one connector for the computer, but I'm annoyed that the microphone I got for my 2nd (3rd? if only they'd named them after an animal I'm sure I'd remember) generation one won't work with my video (5th?) one.