The iPhone has many shortcomings, but this guy lists some things that probably only he cares about. Many of my coworkers have iPhones and the first thing that jumps out at me is how slow they are. So before considering any of its other flaws, just ask yourself if EDGE is fast enough for your needs. The lack of 3G/UTMS support is one of the biggest iPhone blunders IMO. If you get passed that, then try to use the touch screen keyboard a bit to see how you like it. For me and many people I know, that touch screen keyboard is very difficult and frustrating to use. I was relegated to using only my pinkie finger to type mails/messages, and even then I only had about a 75% success rate.
If you can live with the fact that the iPhone is not as robust as other phones, then maybe it's a good choice for you. It is, after all, a neat gadget. On the other hand, if can live with its shortcomings, then perhaps you don't really even need a smart phone...