After 3.5 years with a Treo 650,I finally surrendered and got an IPhone.. I wanted the Palm Pre as I have always preferred the keyboard, the swappable batteries that the Palm Treos had, but didn't want the Windows Mobile OS that is awful (my wife had a Blackjack that drove her batty)
My company has an account with AT&T so I had to stay there. Since all the Palsm are gone from their retail stores, I figured that relationship was dead so I finally gave up waiting. I got the the 3G model and not the 3Gs as it was only $100. The only thing I hear I missed was the video camera, and a screen that is more resistant to the finger grease that seems to build up on the screen.
The Pros:
Apps. My God, how did I live without them. Pandora, SlingPlayer, Scrabble, USA Today, Wall St. Journal, USAA (you can even take pictures of your checks and deposit them in your account with the photo??!!??), BestBuy, LinkedIn, Facebook, Google (with voice search - talk into the mic and pulls up the search results - 90% reliable- things with initials such as B,D,and T trip it up as they are similar sounding), even Yahoo Fantasy Football with live scoring updates....
Web access - much faster than the aptly named EDGE access that made AOL Dial Up seem fast with the 3G. HTML fully viewable. And they have cut and paste now as well as MMS messages.
Better bluetooth interoperability than my Treo.
ITunes (although I use my Zune more... stop snickering..... $14 a month buys me all I can eat music purchases - a godsend for my eclectic side - 10 a month are DRM free to boot so they stay owned by you when you cancel AND can play in any other device)
Visual Voicemail - Look at all your voicemails and select which one to play back.
Keyboard takes some getting used to, but I fly with it now (I recommend typing with it sideways - less mistyping that way with my big fingers)
I have a GPS in my car, but many can use the IPhone as a GPS with software that is expensive at $99, but cheaper than a dedicated unit.
Access plan costs have come down... They are only $30 for all you can eat now.
Cons:
AT&T's network not as good as Verizon. Many dropped calls.
No swappable battery. I had three Treo batteries and this one hurt the most. I have to constantly be charging the thing... especially when using the Slingplayer. I miss swapping batteries like gun clips.
Apple's mercurial attitude towards the Apps, and their insistence on soaking you every step of the way. You can't make a ringtone out of your DRM free music.... You have to buy it off ITunes first. etc.
No insurance available from AT &T. You can buy an Apple plan for $60 that will cover it for one year, but there are tons of exclusions. If you submerge it in a puddle, you are SOL. Just make sure you take it to an Apple store a week before it expires and tell them the battery is not holding a charge. Anything less than 50% of the time you had when you first bought it and you quailify for a battery replacement. I don't know if they give people trouble swapping them out, or if they do it no questions asked. We'll see.