From an investment (and technology) perspective, I think the most important aspect of the iPhone is that it's a platform. The LG and other non-Apple smartphones are mostly as functional as the iPhone in October 2007. But by October 2009, there will be thousands of new applications for the iMiniMacBookPro that Apple will roll out for $500 a pop. Just as thousands of developers are creating new apps for Facebook, so too will developers be all over the future Apple phones/mini-computers. Heck, all the thousands of apps that are already available for Mac platforms will work on your Apple phone by then.
Of course, soon after they roll out that iMiniMacBookPro phone for your pocket in 2009 or 2010, Apple will be slash prices...
And of course, we can argue with Apple permabears who will claim that such cost cuts make it a turkey too or whatever.
Position: Not long AAPL for the first time in years and still adjusting to that