Yes, I appear to contradicted myself up there, but then I do not need or want a multi-function device that includes a phone. Hence, my looking at phone features to see if they justify the purchase for me. The voce dial problem is an AT&T thing you have to pay extra to get.
The iPhone isn't a phone. It's a multi-function device that has fewer features than some other multi-function devices, but an interface that puts everyone else's multi-function device to shame. Find the same or similar features in another multi-function device that out does the iPhone interface in all areas, and you have an iPhone killer. Anyone? Beuller?
The touch screen keyboard is damn good. I've used my coworker's for a bit, just to try it out, and I have to say that the two thumb typing came to me quickly and reliably. And before anyone says "small fingers" no, at 6'3" and 250 lbs, I do not have small fingers. As for dialing, most of the time you will not be hitting numbers, but selecting a contact (which is true of most cells these days). Emergency calls are slide and press, not a keypad thing.
Will it be successful? Yes, because the interface is so easy to use anyone can figure out and use all of its features intuitively. INTUITIVELY. No arcane menus, no easily lost stylus, and absolutely the clearest screen I have ever seen on any portable device, ever.
How's it do as a phone? Meh, in my opinion, but then that's not why people will by it. They'll buy it because it's the first multi-function device that is easy to use, has a great interface, and has enough useful functions to overcome its shortcomings.
The interface is what will sell it, nothing else.
And yes, if you just want phone functions and couldn't care about anything else, it's not for you. Similarly, if you rely on a Blackberry's flexibility and third party apps, it's not for you. If you've never had a Blackberry, or like Treo, or whatever, then you could do a lot worse.
Sit down and play with one a bit if you get a chance, it's simple, easy, and really nicely put together. There are some inconsistencies, but I imagine those will be fixed in time. After all, the interface is really incredible.