As long as Apple doesn't include even the basic features like memory expandability of some sort in the iPhone (that does not require connecting to the internet), in my book, it would remain just as much unless as it ever was no matter what else they do. As for software, it seriously requires a major overhaul. Even the Symbian that I had in 2004 had some sort of home screen apart from the standard grid of icons that every phone has and the iPhone doesn't have an usable home screen leave alone any sort of customization ability for the kind of age we are living in. Frankly, I don't understand how it can even be classified as a smartphone. If iPhone and WP7 devices are smartphones, then Android and Symbian devices need a new name like Super Smartphones to differentiate them from the rest.