I think that you are wrong to say something is unuseable when you clearly haven't used the device other than in a shop. I haven't used an N95, so I can't say, they just look clunky and my personal experience of Nokia handsets has been a bad one. I have had a Blackberry (functional, but bland) and an HTC Touch (painful, just about the worst phone I've ever owned) nothing has come close to iPhone. It's interface isn't just form over function (do you *actually* understand what that means?) it works better than any other phone interface (here's the key bit) IMHO.
It's never been about ticking boxes on a feature list (Nokia) both RIM and Apple want to get the features right and get them working well. The lack of MMS? Personally don't use it, certainly haven't missed it. I'd argue that email is more useful. Does your N95 do that? If it does why do you feel the need to carry a the E71 as you email device? The iPhone is similar to the iPod - which has never had an FM reciever either. Your point? That and the other "missing" features are specific to you. That's fine, don't buy one. 20 million users can't be wrong though. It's the experience that is key, not a list of poorly implimented feature bloat.
18 month contracts are fairly standard across the board now, and have been for a long time. Your £15 Nokia was subsidised by your carrier by the way, although that might go someway to explain why Nokias profits have been tanking. We have been lucky in the UK in terms of mobile contracts. We are one of the few contries where you can get high spec phones for free with a generous and cheap contract. The iPhone contract is actually quite generous. 600 mins, 500 texts, UNLIMITED data over 3G and WiFi. The WiFi coverage in major towns and cities is excellent. The contact is less than £35 a month. No other carrier IME matches that. Yes, the phone cost me £99 up front, it has been worth every penny. The sim free price? £650 on Pixmania. That's only £50 more than the N96. Personally, I've never understood the obsession with Nokia. Ugly, unusable, bloated and cheap bricks IMHO.