We've been holding out on buying a smart phone given the rapid acceleration taking place. Some of the applications we have seen are quite impressive. Here is one: Wikitude. Wikitude takes GPS and phone camera input, and overlays points of interest on the image.
By the way, if you check out the Recommended Stories section, you will see more reasons NOT to get an iPhone. Once again, Apple's insistence on running their users' lives drags down the company. Apple has banned an application which remotely administers legal torrent software, and now has also banned the Electronic Freedom Frontier's RSS application because they linked to a parody video Apple found potentially politically incorrect.
Information Technology in a Free Society should be used to enable Free Speech and Expression. We can not abide a company with such anti-human business practices, unless compelled by an oppressive regime as in Israel, Iran, or Zhong Guo. A California based company protected by the US Bill of Rights has no such excuse. We posit that in a well regulated market, such suppressions themselves would be illegal. In the meantime, boycott Apple.