The iPhone is a smart phone; it can do everything a smart phone can do, including apps, music, photos, internet, texting, and many other features. One problem i have with the iPhone in general is that you cannot block people unless you get it jail-broke. You also have to pay for apps unless your phone is jail-broke. I personally love my iPhone, but it does have it's downfalls.
Pros: fun/useful/free apps; can manage multiple webmail accounts, easy to use, camera is awesome, FaceTime/skype capability on iPhone4; basically replaced my laptop for utility, I open it when I need larger screen. Con: adobe flash doesn't work (unless you jail break, which I won't because it voids warranty and exposes you to hackers/malware); some YouTube videos won't play (older ones)