With the recent announcement that the iPhone will include a custom YouTube application, my interest in the phone has increased 100%. Or 400%. Or 25%. Or -30%. They all wind up with the same initial and final value.
That's not to say I wouldn't want something like the iPhone, I just don't want the iPhone itself. In fact, if you remove the phone part and just leave everything else, I'd love to have that gadget.
Think about it. Strip out the phone part, and make it into a "widescreen iPod." The current 5G iPods already play video. Add in Wi-Fi, keep the browser and other apps, and you've got a device that can surf the web, read email, play music and videos; all in one handy little package. And, what the hey, keep the camera too. The only thing it can't do is be a phone - which is fine.