iPhone sure crashes a lot!
iPhone is definitely 1.0-level software.
Safari and Maps crash regularly. Pictures crashes occasionally.
Sometimes the iPhone gets really slow and you have to reset/reboot it. One symptom that it's time to reboot is when the "slide to unlock" gesture becomes unreliable.
Sometimes syncing fails and you have to erase/restore the phone before it can be recognized again.
The Edge network often drops out. Wifi often fails to work even when you have a nearby unlocked network that worked previously. There is no pattern to when network connectivity stops working, and no cure except to wait until tomorrow.
When the Edge network works, it's fast enough for my needs. I just wish it worked more consistently.
The Notes application is nearly useless to me because there's no "search" feature, no filing categories, and no ability to copy-paste. I want someone to write a full-featured notepad application like Newton Notepad or at least like the Palm Notepad app. Sadly, this can't happen until Apple releases an SDK. because it is not acceptable for the Notepad application to be unavailable when I'm on the subway. Until that happens, I've gone back to carrying an iPhone and a pad of paper to take notes.
I love Maps when it isn't crashing and the network is available. I love having a decent browser when it isn't crashing and the network is available and the site doesn't require flash.
In his keynote intro, The Steve called this thing "a phone, a widescreen ipod, and an internet communication device"; he did not call it "a PDA". As a PDA, the iPhone sucks, but it's pretty good at that other stuff. At least, when the network works.