iPhone = iPod?

I pretty much had anough of the hype already. Thanks god we have a new toy that everyone wants and everyone who got one or not will give a shrug to 4 weeks later. I AM an apple fan. After 10 years of PC/Mac experience, I am pretty clear about it, but what the hell makes the iPhone so special. Yes, I can prevent a few pocket calls, which seem to be happening on some phones, yet I dont own one of those, so no extra feat for me. Yes I can flip the addressbook up and down easily and it looks COOOOL. Christ, I am not surprised noone builds a usable simple phone for $50, cause everyone (& the media) seems to be nuts about graphical features and high priced gadgets. Haven't we seen what happens to high-prices gadgets with the PS3. So it's an iPod and a web browser and a phone. What shall I do with my iPod? Doesn't also most other phones have storage capability like iPhone already? The Prada phone looked great as well, yet I avoided it.
The iPod was groundbreaking with it's harddrive use for storage, it exceeded any product on the marked by 10-fold. The iPhone has an elaborated touchscreen(if it really works that much better) and a nice browser display ability, but definitely does NOT re-invent the phone, nor do I think it is the phone that everybody needs, I rather get myself a Motorola Moto for £27.