The hype seems to be successful marketing. I don't see it.
To change tunes or videos requires a PC a USB cable and iTunes software. (Surprised you didn't see this in any of the press accounts?) This misses the entire benefit of a wireless device. You might as well tape an iPod to your existing phone because that's all the iPhone is.
Apparently there is no way to use the WiFi to make phone calls, which Cingular insisted be blocked to protect their voice business. (Most telcos fear VOIP calls and believe they can slow or stop its adoption.) While iPhone advertises WiFi, I'd they don't really support WiFi, but "wiff" a partial implementation popular by companies trying to lock consumers in. Wiff companies either limit what hotspots you can connect to as Earthlink's does in their ridiculous VOIP phone, or they limit what you can use the WiFi for, as Apple does.
The iPhone's wiff can be used for web and email access, but without a real keyboard it's pretty cumbersome for any meaningful e-mail use. The touch screen keyboard lacks the "feel" feedback necessary to locate and depress keys.
With their iTunes franchise Apple has perfected the art of consumer lock-in with their proprietary itunes DRM. Keepi n mind that the consumer can't play purchased music on anything but Apple equipment.
Apple's intent is to own and control your phone experience. Good luck with that for those of you that prove PT Barnam's philosophy consistently.