It works for some but not for others.
I don't believe that it is a "true" PDA as there is still some stuff lacking that would be addressed in the future I hope. Things like the ability to save attachments, edit word and excel docs which is avaliable on the treo 680 is not avaliable on the Iphone.
The contacts are less robust on the iphone, and while I like the iphone keyboard, my speed is not as fast as it was on the true keyboard devices.
I love my iphone, but have to admit that if I was still in the sales industry, there is no way I would have been able to use it in place of the blackberry/treo that I did use.