I skimmed the Steve Jobs Keynote from Engadget and I must say... that iPhone does look nice! lol.
I love gadgets. What computer programmer doesn't? The only thing is that I spent $400 on a phone (Nokia 8860) 
back in 2000 and I swore I would never shell out hundreds of dollars for a phone again. I currently have a Motorola Razr, which I purchased for $100, and have been happy with it for the last 16 months. I also have been a pretty happy iPod user for the last 16 months. Now, this iPhone seems to be more than just a phone. If it plays music as well as an iPod, handles calls as well as my Razr, and can do everything my PDA (that I never use) can do, then why shouldn't I get it! The thing is running OS X and should be very impressive!
One big downside to the iPhone will be the increase in my rate plan. I am only paying $50/month for my Cingular service since I have a basic plan with little SMS/MMS usage. If you have an real computer built into your phone, with full Internet capabilities, you NEED to get broadband on your phone. Cha-Ching. My cell phone bill just doubled.
I can't wait to see reviews of this phone in the spring. The last two iTunes enabled phones had less that stellar reviews, but this one looks real good!