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I think the strength of the iphone is that is not MS based. Windows mobile might be neat but is not convenient for mobile devices, is too similar to its desktop counterpart. The iphone OSX version on the other hand is better tailored for small devices (no stylus needed!). Don't get me wrong, I love my PPC6700, but i must admit Apple has a great platform with the Iphone and it will only get better. I hope Palm and other linux and unix distributions (and why not even MS) pick up on Apple's example and develop a mobile OS that breaks the "mini-windows" mold. Now if Apple could bring out a mobile version of Safari, boy!!!! I would be really happy!
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