The device was never meant to replce a point and shoot camera and beside the quality of the camera is more than adequate for what it was designed for: quick snapshots and for taking pictures for your contacts list.

I can record movies I just jalibroke my iphone which is 30 minute process. You then install Cydia which allows you to install non-Apple approved products and away you go download Psycorder and you have video recording on the iPhone. the only reason it doesn't come as standard is because Apple has put it as alower priority in the development cycle. It's interesting to note that although I have to do this right now Apple has said to third party developers in its own app store not to go after the "low-hanging fruit". What it means by this is that there will be capability for all the the things other phones can do but only when Apple can make damn sure that its own software is nothing less than perfect... until then you have to get downright geeky and risk turning your phone into a brick by jail-breaking it to install the aforementioned app(s).

From what i was understood, the new software (iPhone 2.0) will allow flash and windows media player (I'm not sure).

Apple is against piracy, so if they were allow file transfer between phones they would contribute at distributing the music (at least that's what they try to say).

Read the point about the camera above - you can jail-break your iPhone and install non Apple approved products which can do what you want.

The SDK will be released sometime in July. But however, Apple put developers to pay to develop applications.

Also jail breaking your phone, which DOES NOT invalidate your warranty unless you unlock it, allows you to install a ridiculous amount of third party apps and games adding functionality to your phone that Apple has not released as yet.

Front facing conference cameras are fancy extras Not very many people utilize MMS, too expensive no "real" bluetooth: who cares, its a phone. and also apple isnt pirate friendly

But it still is a:

Phone

iPod

Full on Internet browser

Email device

Gaming Platform

GPS (in a few aspects)

well rounded device

all in all it is better than any other phone. go buy one. now.