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The iPhone is pretty cool, but I wouldn't get one. The lack of a physical QWERTY keyboard is the deal breaker for me, and also fingerprints...I'm kinda anal about those; I'm almost always polishing the cover my HP Pavilion, which is very fingerprint-prone.
I also don't like AT&T for a variety of reasons. I already have a Palm PDA and a perfectly good iPod, and I have no need for a all-in-one device.
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