I have now had a new iPhone for three or four weeks. My old phone contract had come to an end and I use a mobile a fair amount, so I was already on a £35 a month contract. On my £35 a month iPhone contract I get the same number of minutes and unlimited Internet access.
The bottom line is that the iPhone is almost infinitely better than my previous phone (HTC's TyTyn). Everything it does it just does brilliantly. Everything is completely intuitive and after 4 weeks I think I have pretty much every feature figured out. On the clever windows mobile phone I never figured out half of it - even after 2 years.
Here's a blow by blow account of the things that matter to me:
Typing. Apple have this extraordinary touch keyboard. It's ever so easy to use and changes depending on context (if it thinks you're entering a web address .com is one of the keys). It obviously needs getting used to, but within half an hour it was much better than the HTC's slide out keyboard, and it's now hard to imagine going back to a slide out keyboard. When you make a typo it nearly always gets the automatic correction right, which means that as you learn to trust it you can really begin to type quite quickly. I am typing this on the iPhone, which would be inconceivable on the old phone.
Calendar - is no better or worse than the outlook based calendar on the previous phone. Outlook for windows mobile wins in being able to visually allocate a slot to an event, but repeat events are better handled on the iphone as are adding notes to an event.
Note taking is infinitely better on the iPhone. There is a great notepad application that opens with a single touch on the homescreen (as do all applications, until you start downloading loads and then you have a second homescreen). Also, there is a perfectly good free audionote application, which is also easier to use than the HTC one.
Contacts - look fantastic and syncs fine with my copy of Outlook. I can scroll through 350 contacts in no time - this is a major improvement on windows mobile's list.
Phone - is great. VoiceMail appearing on the phone is much better than having to ring up Orange for it and go through their menu system.
Texting is a revelation. You get to see a series of texts as a conversation - it makes it feel like instant messaging.
All these things are brilliant and matter to me. The interface makes everything very easy, immediate and slick.
You also get fantastic internet and email capability, an impressive video iPod, lots of downloadable games and neat applications like the iTunes remote. Without any of these it would still be a ten fold improvement on what it replaces.