iPhone is fantastic as a phone. Many people have claimed that the latest OS update v2.2 has improved connections (they have less dropped connections) and voice mail quality.

I find it better than any of my previous cell phones in the same southern CT area. I don't know if AT&T has made improvements in this area (I don't think they have) but my cell phone reception is much better than what I've had with Nokia, Blackberry,and Motorola phones before -- those were with AT&T too.

I wouldn't look at any other phone right now except Google's G1. I would still classify that as a "beta" phone though. Apple's great in that they come out with new versions of the iPhone firmware that improves it as a phone and internet device every two months or so.