And the hackers would have released hundreds of "Applications" for the iPhone that bricked it.

I'm not getting the iPhone because of it's price, but most of the "flaws" people point out are actually done on purpose.

***PROS
No 3G means it actually has decent battery life.
No native apps means you don't have to be scared to death of running a new app on your phone.

***CONS
Price
No user replaceable battery
Does it have a SIM card slot?