Amazing..

There is something that is happening that I've never given much credence. I keep reading about it, but for some reason, it just passes me by. That is until I saw this article. Is the iPhone really a contender in the handheld market? It doesn't have any kind of tactile feedback, and I'm sure the graphics are pretty limited. Still, I keep hearing it being discussed with the likes of the PSP and DSi.. and now, "New PSP to take on iPhone..." I mean really? Is there something that I'm missing?