I think the market has recovered from the newton. Yes the newton was flawed but it was the vision that possibly started the PDA's we see today.
Apple have already announced that cocoa third party applications will be possible... just not yet.
The people that bought the ipod are now used to having a reasonably 'large' device hanging about their necks.. I don't think they'll think twice about replacing it with their iphone. The newton never had that luxury.
I was one of the first people with a phone/pda. I bought the original XDA/MDA then later bought an XDA II. I've been looking for a replacement for what I've become accustom to. I cannot find a good device that does Wifi, HSDPA and GPS ... I can get one, or both but not all three. If I want both I have to put up with a lesser powerful cpu. I dont believe in going backwards to go forwards.
So obviously the iphone is not for me... but then I never saw the need for an ipod either.. my xda was fine with a bigger memory card.
Why wont I buy an Iphone?
No removable battery
No expansion slot.
Otherwise I'd be one of the apple fan bois out there foaming at the mouth to grab steve jobs latest gear. For me ? I'll wait for revision 2. Same with the appleTV, I want a box that can also record.
I so badly need a new phone :( I've bounced mine off more surfaces than you can imagine.... the OS that the iphone uses will become the utopia of mobile systems. I wont be buying one because the hardware lacks value worth the price tag.
OTOH... I hear that some phones can be upgraded via firmware from EDGE to 3G/HSDPA so maybe those without worries of expanded memory and lack of a removable battery will be able to sleep easy at night.
just 2cents from someone that finds pda/phones have value in their lifes.