Definitely not worth the old price! And probably now, definitely worth the reduced price. Beautiful phone, Amazing interface; fun stops there. You are restricted to ATT and ATT is hit and miss; clear and crackly, in and out regardlesss of bars. Edge is slow. Synching is problamatic (windows/Outlook), the "real internet" lacks Flash and other real internet technologies, No games unless you have internet access, No IM, No MMS, No local storage, smartphone portion of device lacks smartphone features and conveniences, phone needs to be reset frequently, locks up quite a bit when trying to answer calls with BT headset, build quality looks great but case is separating from bezel, slippery to hold and extremely expensive to repair, no removeable battery, too many clicks (button presses) to access standard features like phone. You asked for an Honest opinion. My recommendation is to wait for the 2 iPhone rumored to be out this fall, or for the 2nd Generation iPhone. It is a cool phone, but bragging rights are gone, and fixes are slow to come. They've got an 8 cylinder hitting on 6. If you just need a phone, don't want smartphone features, and you have a lot of money, then go ahead and get it. If you need smartphone features then I'd say get something else and don't look back. My recommendation would be to get a much cheaper phone and buy the new iPod Touch. I think you'd get a lot more utility with that combo.
I know this won't be a popular post, but he did ask for an honest opinion, and this is mine. Flame me if you wish, but we all have our own perspectives, mine is just one of them. And yes, I did my homework, I do like the phone, but can find no way to justify the cost of it, the speed of patching, and the customer service.