iPhone is able to handle perhaps 10x the number of contacts of the average cell phone without undue burden on the user. The acceleration algorithm, coupled with the “friction” algorithm, appear to let the user “throw” the list with learned speed, then have it slow on its own as it nears the target, making it simple to hit the target on the first try. Very nice.
Those of you young and technologically inclined may find this difficult to believe, but the average cell phone user cannot use many features you may find standard, such as call-waiting, call-forwarding, and conferencing. Apple has made these features completely accessible to all but those dangling their legs off the far end of the bell shaped curve.

The photo interface will certainly improve upon what has come before, but not by that much. Applications on the Palm are not as elegant, but can handle the same approximate number of images before getting cumbersome. Apple’s interface, however, is smoother, sleeker, and certainly sexier. Having the orientation-sensor is a big win, as well: Shifting the orientation on a palmtop device picture-by-picture is intolerable. (I have two indexes of photos on my Palm: Those that are horizontal and those that are vertical.)
Orientation-sensing is, again, not new: Canon, for example, has used it in its cameras for years so that the photos “know” whether they are intended to be viewed horizontally or vertically, based on the orientation of the camera at the time of shooting. Again, Apple has put it to a new and valuable use.
The 2-megapixel camera, of course, is pretty much so they can say they have one, although it exceeds the resolution of many other smart phones. It needs to be 5-megapixel minimum and, in keeping with the rest of the interface, it would be nice if it “knew,” by means of GPS or other location technology, where it is, so the resulting photos could be location-labeled. Facial recognition would be a plus.