As usual Time magazine seems to have gotten a bit of a sneak peak of a hot new Apple product. In this nice writeup, Lev Grossman discusses some of the background behind the iPhone. Uncle Steve was apparently up to form during the discussions about the iPhone. Grossman notes that "Jobs trash-talked the Treo, the BlackJack, the Sony PSP and the Sony Mylo ("just garbage compared to this"), Windows Vista ("It's just a copy of an old version of Mac OSX") and of course Microsoft's would-be iPod killer, Zune."
This welcome article nicely fills out the story of the iPhone a bit.
[Edit: fixed link]