This is not normally a tech blog but how can I resist a great chance to bash the iphone?  Check out Opera Mini™ 4 beta.  It will cost you $499 (or $599) less than the iphone.  And you won't have to fork out another 1500 bucks over the lifetime of your two year contract. 

Check out the handy Opera Mini simulator (or the Beta Simulator) to get an idea of what it will look and act like.