Those saying $500 is too much obviously haven't done much shopping around. Currently people are paying up to $500 for a Palm Treo or Nokia Communicator - even the Motorola RAZR V3 cost $499 when it first came out. The Apple faithful will certain consider these devices unworthy to be mentioned in the same sentence as the mighty iPhone.

In the eyes of some Apple can do no wrong - a measly 500 bucks is nothing to these people. You could charge $1000 for the iPhone and a few fools would still buy it.{moscomment}