iPhone 4 first hands-on! (update: FaceTime video demo)

We've just gotten some face time (ha ha!) with the new iPhone 4, and let's just say this: it's incredibly sexy. We'll hand it to Apple, the phone is so thin it's kind of mind-boggling. The 3GS by comparison looks bloated. Feast your eyes on the pics below, and check out the FaceTime video demo after the break! Oh, and special thanks to hand models Kara Swisher and Walt Mossberg.

Some takeaways about the device:

• As we said, it's shockingly thin.

• The screen is truly outrageous -- you basically cannot see pixels on it. We're not being hyperbolic when we say it's easily the best looking mobile phone screen we've ever laid eyes on.

• The build quality is really solid. The home button feels much snappier, and on the whole it just feels like a tightly-packed device, but it's not heavy.

• The side buttons are really nice and clicky.

• iOS 4 is very familiar -- there's not a lot added to fit and finish.

• The general speed of the whole OS is way snappier. The camera app in particular is noticeably faster -- shots get snapped in an instant.

Update: More pics! We've also thrown in a video demo of the iPhone 4 running its FaceTime video chat app. Check it out at the usual location.%Gallery-94611%%Gallery-94616%