My first response: wow, this is an amazing device -- geo-location services are finally here! -- can't wait to pick one up.
But now I'm just depressed.
I'm depressed because people I know who have been working on great products are going to have an impossible time competing with Cupertino - every ajax desktop, data backup/sync, ???.
I'm depressed because apple apparently hates open-anything. Jobs smirks "oh hey we're going to let you push icon updates to the phone" -- WTF? Oh thank you great benevolent one. Then they proudly announce they had approved 4,000 developers. Nevermind the 21,000 we arbitrarily dicked over.
For developers it seems like the only upside is that someone is finally kicking mobile carriers in the teeth -- long since overdue.
In five years will we be missing Microsoft? :-/
Why? Because the landscape has changed?
People affected by this will just have to adapt and find their place in the new landscape. That's all.
The pie is so big there's room for everybody. And if you still don't think so, there are plenty of other pies no one has noticed yet. You just gotta find them.
Nothing to be "depressed" about. Happens all the time.
OTOH, this is an excellent example of the advantages of being small and nimble - you can adapt quickly while the big boys are stuck struggling.