The iPhone lacks the following commonly found features:
Songs as ringtones
Any flash support
MMS support (picture and video messages)
Voice recognition or voice dialing
Wireless Bluetooth Stereo Streaming (A2DP)
A real keyboard
Talk about a version 0.1 product, way to release an engineering sample Apple. Why the hype? My dinosaur phone from the 17th century could do half of that stuff, for an 8th the cost.
It also lacks things found on Windows Mobile devices, like voice recognition, so things like asking the phone what track is currently playing and it speaking back to you (using something like Voice Command) is out of the question, being able to copy and paste text, being able to install 3rd party applications. Oh and the operating system uses a whopping 700MB of the hard drive.
All hype, no substance.