Nokia are saying that the N95 is better than the iPhone, at least in the European market. Just read an article on SiliconRepublic.com: Nokia aim to “rip through the iPhone hype”

While I personally would prefer the features in the N95, the screen, interface, and form factor of the iPhone are much better. If Apple could put in a 3G radio and allow you use the iPhone as a modem…

The whole reliability and updatability issues will have to wait until the phones have been in the market for a while. (I’d be concerned that the large iPhone screen would get scratched.)

Edit to add: “…European carriers are hell-bent on reviving flagging ARPU (average revenue per user) levels by replacing lost revenues with new streams from high-speed data services…” Network coverage issues are still going to be an issue - when you force everyone to use online data they get annoyed when they can’t access it. (e.g. I work in a metal-clad building and can’t get phone coverage inside)