Rather than believe a story via an anonymous source, I would place more credibility on the “on the record” word of someone who we know had time on the iPhone … Andy Ihnatko.

(from MacRumors) Andy Ihnatko: Hands on with iPhone

Chicago Times columnist Andy Ihnatko reports on his 45 minutes of hands on time with the Apple iPhone following its announcement at Macworld. He offers some interesting observations based on his experience with the iPhone. Here is a key excerpt:
The touch-interface works flawlessly. “This is the simplest phone ever.” “After 30 seconds, I was already typing faster with the iPhone than I ever have with any other phone.”

The full article here >Andy Ihnatko Hands on with iPhone
http://news.worldofapple.com/archives/2007/01/18/andy-ihnatko-hands-on-with-iphone/

One final point re John Dvorak. There will always be a handful of pundits, bloggers and “journalists” who have less than honorable motives. We all have a point of view, but true professionals strive to offer balance. IMO Dvorak and his ilk, have purely selfish motives. Some receive “consulting fees” and just happen to have more favorable comments about companies who pay them to do “studies” etc. In Dvorak’s case, he’s a provocateur who is in it for the numbers (“hits” = money).

This video tells you all you need to know about John Dvorak (direct from the source)
Must see – http://www.youtube.com/watch?v=NMQv0j29WHA

DVORAK’S FORMULA FOR GETTING ATTENTION AND PISSING OFF MAC/APPLE USERS

Example of his formula in action:

Dvorak Bomb: I got a call last night. “I think it’s time to sell Apple short,” said the voice.
“I think that’s premature,” I responded. “What have you heard?”
“The keyboard is a disaster, and people are going to return the phone in droves. I’m guessing 20% will go back.”

Dvorak “Weasel out” (“nooo you miss-interpreted what I was saying” ):
“As for the iPhone keyboard leading to disappointment and returns, I’m not convinced. I’m sticking with my scenario where the phone is hugely successful for a couple of quarters”