FWIW, I got the iPhone when it was $600 and have never regretted the purchase. I'm laying on my side in bed typing this on my iPhone right now, actually.
It's always funny to see people with smart phones saying, "my phone does more stuff," then they actually try the iPhone, hang their head, and go, "yeah, um, that is pretty damn awesome."
Is it perfect? Hell no. Is it lacking some features I'd like? Hell yes. But it's beautifully designed (both in form and function) and I'm honestly wondering how I managed to live without it now.