After reading a great deal about the iPhone in the last couple of days, I’d say among the best analysis has to be from Michael Mace. His analysis shows that Apple could face death outside of the US. Ironic when Europe and Asia are the real mobile markets they should have aimed at, not the ‘less dropped calls than other networks’ market of the US:

This design may not go over as well in Europe and Asia as it will in the US. In the US it’s easy for Steve to give a speech saying how stupid it is to type using a phone keypad. In Europe and parts of Asia, a lot of phone users are very used to doing it for SMS, and no matter how stupid Steve tells them they are, they kind of like doing it. I think they may not be happy trading in their physical keypad for a screen where they can’t feel the keys. That forces them to look at the screen when they type. For these people, Apple’s product is like trying to get touch typists to use a keyboard that’s just a flat glass surface without moving keys. With the single exception of the sets on Star Trek, this has never been accepted by anyone because the ergonomics are bad. I think Apple is at risk when it tries to change the established habits of users.