I agree with Eli. I am a proud owner of a JasJar and I’ve mentioned before what I think a JasJar Mk.2 would look like feature wise. When I look at the iPhone I see slick packaging but ultimately nothing to get really excited about. Admittedly the Windows Mobile could do more from a UI perspective but from a feature perspective the hardware vendors like HTC are years ahead of Apple.
To be honest, I was surprised when Apple came to the market with a device which offered so little – they surely aren’t going to define the market with the iPhone like they did with the iPod. The only thing that may work in their favour is their brand and the leverage that existing iPod customers hooked on iTunes give them.