Dear iPhone
You better have UMTS or you are dead to me.
Although I love your design and interface, where it matters for a phone I find you lacking.
According to the specs you are just quad-band GSM.
And no GPS? Is that even legal in the US now since the E-911 mandate?
What will probably kill the you is the normal obscure telco guild turf cartel plan stuff that only makes sense to marketeers.
The networks they bundle you through will be your weakest link if they tie you down to special “providers” like they have US with Cingular and AT&T.
I’m not going to switch down to a 2.5G network to use you and I certainly won’t buy you from the US to get you a year early just so I can do 2.0G GSM.
James McParlane's Blog 
I think you’ve nailed it – the design is great, but the actual bandwidth is crappy. Carrier flexibility will be the key. I’m not sure how that will play out.
Interesting to consider, though, that it’s probably the most blogged about device on the planet right now. And that in the week of CES.
I would be VERY surprised if the Apple iPhone did NOT have GPS, that would be a monumental oversight if that were the case and would make short work of the usability of the google maps etc.