well the features that i love about the iphone are:
The touch screen, i have a feeling lots of people are going to say this one.. well its touch screen, cant say much more about that.
Before iphone = have a phone and a ipod in your pocket
after iphone = both in one nifty machine
that saves alot of pocket space and time
well there are my fav features (if the 2nd one is considered a feature)
this may sound kinda weird, but my favorite feature on the iPhone may be the youtube aspect, if only because its the first time youtube has a good interface.
Touchscreen all the way. Who needs buttons anyway, besides typing text on an 9 button keypad it's absolutely useless... well, once every millions years you might type a phone number, but that's it. Touchscreen, with FINGERS... I would hate losing the pen.