Looks like the Apple keynote is now done, and The Apple iPhone is real. A combination full screen video iPod, phone and internet communicator device (has wifi, web browsing, etc). Full screen touch screen, system runs OS/X and has all the sexyness that Apple brings to not only hardware and software. Everything it runs is like the desktop app as far as contacts, safari, ichat (for sms messages), etc. Visual voicemail, imap, push imap, google maps, etc.
Dana's comment is that he has a smartphone already and half the stuff that the iPhone does doesn't really matter (80/20 rule). I say we'll see. The first iPod that was introduced was poo-pooed as well as being useless and no one would ever use one. Personally I am confident in Apple's ability to create a market.
They also changed their name to Apple Inc, from Apple Computers Inc. Change of focus maybe? Something more ominous?