I felt the same way when they first came out and a few friends wouldn't shutup about them. I had a Palm Lifedrive at that time that virtually held my life in its palm.
Then it died. I wept like a baby. Then I went to replace it and found that it was cheaper to get the new iphone as it could not only do what I had been doing on the palm, but much more besides and also meant I had one less device to carry around. As it was, to me, time to replace my old mobile it was a no brainer.
I apologise to those I annoy by talking about how good it is. But it is. Really.
Insert usual disclaimer about not being an apple employee or holding apple shares >> here <<.