I guess I'm lucky. 3G service where I live is fantastic. I've been with T-Mobile, Verizon, Nextell, Bellsouth, and Sprint and this is the first time my service has worked in my house and all the other places around town that I go.
Everyone has different needs from a smartphone. For me I want something that syncs with my laptop without any setup or hassle and without reading a manual.
The bad... The iPhone camera sucks although the one in the 3Gs is a bit better but still not great. Can't view pages that uses Flash. Doesn't run 3rd party apps in the background but really not that hasn't turned out to be that big of a deal.
Things that I thought would be an issue but didn't turn out to be an issue. Non removable battery. I bought a
battery pack which is actually works out better. I've also surprisingly grown to prefer a virtual keyboard.
The integration with iTunes is what really does it for me. I've got 106 applications on my iPhone. It controls the lights in my house. SSHes into my servers. Controls my music system. Is the remote for my AppleTV. GPS with Google maps. Lets me view my security cams on my house when I'm away. Gives me live weather radar. Finds my car, entertains me and even makes phone calls.
It getting automatically backed up whenever it is charging has saved my ass a few times now and being able to find it using Google maps or remotely wiping it if it really is lost has also come in very handy.
But everyone should use whatever phone is best for them. The iPhone isn't for everyone. I'm just hoping that we see a surge in mobile porn after the holidays.