Exactly who is going to buy an iPhone?

I think the iPhone is an absolutely sick device. The functionality is way better than my phone or pretty much any phone, the wide screen movie player is a nice touch added to the music player, and the web browsing capabilities appear to be phenomenal.

BUT - who exactly is going to buy one of these? The 8GB model can't even come close to holding my music and a few movies, so my video iPod is still better. And as cool as the web browsing capabilities are, they don't top what a laptop for the same price can accomplish. I wouldn't risk wearing it while I'm at the gym, I'll stick with my cheap and tiny iPod shuffle for that.

I really only could see value in buying one if I was a huge tech nut or if I was on the go all day long....except for the fact that if I was on the go there are much, much better business solutions like a Treo or a Blackberry.

I ask you, for the $499 or $599 price tag, who actually will buy an iPhone?