Considering what it does, it's not overpriced - dslreports.com

Considering the cost of a PDA and video iPOD by themselves the iPhone is not 'overpriced'. My Treo700W which turned out to be a huge piece of poo that would never sync right was $600 and doesn't do 1/2 the cool stuff the iPhone is supposed to do.

http://www.broadbandreports.com/forum/r18089249-Considering-what-it-does-its-not-overpriced~fmode=full