iPhone - Worth the money or not?

The launch date of the iPhone has been revealed. So on the 9th of September people from the UK will be able to purchase this so called 'revolutionary product' for the price of £269. Apple has chosen o2 as it exclusive mobile network operator beating off rival networks such as Vodaphone and Orange. The iPhone comes available on three different 18 month contract packages: £35, £45 and £55.
The iPhone is essentially a phone, an iPod and a web browser, as well as much more packed into this tiny device. However, what about 3G, GPS and the lack of JAVA. This seems like a lot of money considering it is missing some vital bits of modern mobile technology. Here is a breakdown of the costs.

£269 + (£35 x 18 months) = £899
£269 + (£45 x 18 months) = £1079
£269 + (£55 x 18 months) = £1259

One begs the question is the iPhone worth all this money???

Links: BBC Article, Apple iPhone