Having switched from my beloved Nokia E71 to the new iPhone 3GS I really can understand the problems faced by the engadget reviewer. I thought I'd post some thoughts on my 'switch'.
I've had the iPhone 3GS since launch - so a few weeks now. Put it this way - I love Apple computers and have used them since the 'Classic' many eons ago but when they launched the iPhone I stayed well away. Back then it was hopeless.
However cut to the latest incarnation and the 3GS is a fantastic device albeit flawed. Here are my thoughts, bullet point style:
Keyboard: The E71 is better than the iPhone's 'soft' keyboard and the lack of a T9 alphanumeric keyboard on the iPhone is seriously lame. However you do get used to the iPhone keyboard after some time.
UI / Speed: This is where the iPhone wins hands down. It is so completely slick and so much faster than my E71 that everything just seems faster, easier and more polished. It can keep up with you whereas the E71 and other comparable Nokias often seem very underpowered. The iPhone 3GS really IS fast.
Camera: The new iPhone camera is actually really quite good. It is infinitely better than the terrible camera on the E71 which I found pretty useless. Video on the iPhone is REALLY impressive, it just seems so smooth. I also don't mind the simplicity of the controls.
Apps: Wow. I have to say when I didn't own an iPhone i HATED iPhone users going on and on about their 'apps' but I can now understand why. Simply put some of the Apps available both free and paid are outstanding. In addition to the usual utilities such as instant messaging and so on there are some brilliant games (Sporting awesome graphics and speed) and also some ingenious creative Apps such as music production software allowing you to create totally useable loops or sounds. Nokia's 'ovi' store is just a little embarrassing by comparision. The implementation of the Apple 'App' store is also excellent.
Multitasking: To be honest the iPhone 3GS pretty much takes care of everything I used to enjoy on the E71. I LIKE the email client - although I miss the 'push' of 'SEVEN' email on my Nokia...however the rendering of emails is so good on the iPhone that I'm happy. There's a built in compass and turn by turn navigation now so that's covered...and so on. But where the iPhone fails so miserably is the lack of true multitasking as illustrated by the engadget author. Although the new push notification system goes someway to solving this problem it's just not good enough.
For example - I sign into MSN using IM+ on my iPhone 3GS. No problem. I can specify how long push is connected for. Ok so far so good. So I switch to MAIL. I can receive push notifications if someone messages me. But then I have to wait for the IM+ App to load...and as fast as the iPhone is it just cannot compensate for this truly outdated workaround. On my E71 I loved being able to instantly switch between apps by holding down the option key. It was easy, fast and enabled me to truly flick between a browser, email, calendar...and so on. This is sorely missed on the iPhone and Apple HAVE to sort this out.
General: The only other thing I think is quite rubbish with the iPhone is the lack of a decent home screen showing notifications, status updates and so on. Just seeing a confusing load of App icons isn't the best use of screen real estate especially with so much processing and graphics power available!
In general though when Apple do get it right they do it very well. Once these caveats are sorted I wonder how well other OS's will be able to compete because right now I'm loving my (flawed) iPhone and cannot see myself going back to an S60 device!