If you scan the CES coverage, you’ll notice that cellphone manufacturers have done the expected - launched a ton of iPhone competitors with large touch screens. I suspect they also feel that consumers will see the big color touch screen and assume it has the same or better capabilities as an iPhone which, of course, it won’t. They will have advantages over the iPhone like qwerty keyboards, better carrier options, and in some cases, better 3rd party application support. But they won’t have the slick multi-touch user interface. That’s too bad, because I think that’s the ONLY thing that makes a touch screen on a phone worth all the fingerprints.
Check out the “small screen” phones with the big screens because that’s where your audience is increasingly turning their attention. Here are a couple to watch.
EDIT - ok, the Mylo isn’t a phone, so this note below really references an iPod Touch competitor rather than the iPhone competition. So you get two posts in one.
But my FAVORITE feature on the new crop of touch devices, so far, is found in the Sony Mylo below. It illustrates that Sony clearly had their marketing team involved too much in the design of the device, because they added a “BS” button:

