With all the hype around the iPhone I think everyone has forgotten what really matters. Apple are using their ability to create a rich and effective user experience which in my opinion is why the iPhone is getting so much attention. It's not that they are doing anything that "can't" be done on an existing device, it's the fact that they are pushing the bounds of accepted user interface design. Perhaps Gabriel from Small Surfaces is right in saying that a "consistent UI ... is hampering ... innovation" but I think Alex might disagree.
This, believe it or not, is a .NET Compact Framework v2 application that really demonstrates the ability to build a rich user experience on the Windows Mobile platform.