I have an LG phone and its great, does everything. This phone is a lot of hype.

actually, the hype is based on reality. the iPhone really is everything they say it is... if you are in the market for a simple phone then please settle for that, but if you want the quintessential communication tool that not only surfs, texts, syncs, swims and cuts julienne fries (not to mention games, renders CT scans in color and 3d, plays movie, music; tells you where you are, where you've been and what the weather will be like when you get there) then by all means get an iPhone. It simply is the most advanced all in one device on the market BAR NONE! Everyone elses touch screen is a cheap imitation, everyone elses interfaces are obsolete, everyone else is simply copying playing catch-up... and poorly at that. It REALLY IS THAT GOOD. PERIOD (exclamation point).

It will soon be obsolete. Folks spend SO MUCH $$$$$$ on these technological wonders, only to have the next generation come along soon enough and make theirs feel old-hat. We've seen it with computers, iPods, game systems, and cell-phones.
I just figure what I have now (old school cell phone) works, keeps me in touch with folks, and I can make due just great.

Another amazing thing about the iphone is that it is upgradable... my iphone purchased fall of last year has been boosted once in October and received a substantial boost in performance today (at 6 AM prior to itunes serves melting down...) I now have increased capabilities and the sky is the limit with the new app store coming online! Heck, I can even now use my phone as a lightsaber with authentic sounds with every random flash of my wrist this way and that! Try that with your LG motosonic! (free app I picked up from the store today). Furthermore, the iphone continues to out perform and out sell all other competitors. Now that it supports ALL mainstream office apps, Microsoft, apple and pdf, it accelrates to new heights in business productivity with Entourage grade seamless interaction with home/office computers. G3 or not, it is truly the cutting edge of communication and productivity, invention and ingenuity on the market today!

Sounds to me like you are trying to justify (to yourself, mostly) the costs associated with owning a first-generation product that isn't yet everything it could be. I'll wait until iPhones are ubiquitous and NOT on AT&T.