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I'm very happy with my iPhone. No device comes close to matching it, the only question is "should I pay this much aka is it worth it to me" - for me I sold a BlackBerry Pearl and an 8GB nano and came out on top so it was a no-brainer.
As far as carriers go, AT&T isn't that bad, the coverage is good, customer service is tolerable (for how fucking HUGE they are). I liked Verizon a bit more, T-Mobile had the BEST customer care but the worst coverage (and devices). Still despise Sprint/Nextel. That's my $.02 - good luck with it.
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