We're just lowly bloggers here at TUAW, so we got no closer to the iPhone than the rest of the Macworld attendees, that is from the other side of a clear plastic barrier. David Pogue, though, is a different story. The New York Times columnist had an hour long meeting with Steve Jobs and Phil Schiller where he got to touch, and use, one of the iPhone prototypes. He typed an email (typing is a little awkward on the virtual keyboard), made a phone call (crystal clear), and found out that it isn't ready for prime time (some features aren't complete).
Pogue addresses some of my concerns about the 'smudginess' of the display, but I'll still need to hold one myself before I pass judgment.