Yoda, I think his point is this. As you put it, it is supposed to be a phone, camera, ipod, and web browser, but there are phones that already do that, albeit in different "non-apple" forms. Every commercial, add, and ifanboy review declared it the best thing since sliced bread with all this cool "new" features. The fact is the only new thing is the voice email, and the touch screen(which is admittedly cool), but in every other way its lacking a lot of very important smartphone features, runs on a slower network, as well as many many other things.
If you read the gizmodo review someone posted you have a good idea about this thing, to me at this point its like a concept car, lots of great potential, but the current implementation is more hype than function.
Hearing non-tech people talk about this phone makes me want to cry, its as if they have no idea that other such devices exist, and apple just invented this totally new thing called a smart phone.
As to the Ipod vs other mp3 players, I have used several from different manufacturers and happen to like Creative the best, my personal opinion that Ipod does so well is marketing, and the "cool" factor. Its not cool to have a Sansa, its cool to have a Nano, and in the 15-25 range(which is the primary market for this product) thats a HUGE sale factor.
Check out my blog at http://www.rotopulse.com for fantasy baseball analysis, injury reports, commissioner info and more.