The Apple iPhone has been in user’s hands for about 8 months now. Hard evidence is appearing that the iPhone is possibly the best mobile experience currently available.

Google reports that 50x more search requests coming from Apple iPhones than any other mobile handset. This is dramatic evidence that searching and surfing the web really works on the iPhone.
EETimes reports about a panel discussion at the Mobile World Congress in Barcelona has been apparently been also stumped at the success of the iPhone.
Apparently a study said that 77% of iPhone owners are "very satisfied".

In the comments of the EETimes article are some very true statements that the Apple competition is not understanding what Apple is doing and why they rule the portable music player market and why they could eventually rule the mobile device space.
The key is not individual features but the sum of it all and how they create an experience for the user.

When Apple puts some 3G into the iPhone and makes it maybe a bit smaller I will become a "very satisfied" iPhone owner too.
iPhone available on the Apple Store.