"Never buy a first-generation Apple product!" goes the old adage. But the iPhone looked so cool, I decided to skip that warning and pick up one.
I got the 4 gig $400 model. And had problems.
Crashes and freezes were common when I first used it for about a week, but they mysteriously stopped after a while. Not sure why.
Reception on this phone is just plain pathetic. It picks up and drops calls numerous times. Part of this might be AT&T's inadequate coverage, but compared to both Verizon and Sprint phones, iPhone had a nasty tendency to kick me off the line, especially as a passenger on the bus going up and down highway 101 in San Francico. Very frustrating.
The data connection is SLOW. As in, incredibly frustratingly back-to-dialup-days slow. It's unacceptable. Apple has added WiFi to make up for EDGE's tortoise-like speed, but it's not enough. This phone is simply too slow to use for serious web browsing or e-mail.
You cannot search e-mail on the phone.
E-mail attachment and manipulation are limited. If Apple doesn't support viewing the attachment you receive, you're out of luck.
The e-mail system doesn't support secure corporate e-mail systems like Outlook, so if you're looking to use it as e-mail on the go, forget about it.
The keyboard is incredibly annoying. You get used to using it after a while, but it's a slow and frustrating process with no tactile feedback. And smudges dominate the screen when it's over.
The autocomplete function substitutes words that often aren't even remotely the word you were seeking.
Worst of all, mine had a bad habit of cutting my face when I held it to my cheek because of a sliver of glass breaking off of the screen.
Apple charges for ringtones -- even if you already own the file, you have to pay an extra 99 cents to render it into a "ringtone" file... and many songs on the iTunes store aren't available to serve as ringtones.
The phone is gorgeous and easy to use. It's the first "smartphone" that my mom could use without any trouble.
The web browser is stunning. No other mobile phone browser I've ever used comes close.
The iPod functionality is useful and welcome (though more capacity would always be welcome!)
I bought an 8g iPhone on the second day. I paid too much. But, I am glad I bought it, and find none of your problems. I live in an area not served by ANY cell service, I can still use my phone's wifi access.
Your cut from the screen sounds a little phony, though! I can't see how the design would not allow a "sliver" to come off the glass.
As for me, I am more than glad to use this tool, and toy! I especially like the way they have already upgraded my features, and have made my pocket computer more effective... and keep promising more... and more... and more!