Personally I think the iPhone is brilliant with only a couple of reservations.
The lack of multitasking - it is being addressed with OS 4 due in the summer.
If the camera is important to you then it is only 3megapixels - It will be improved in the next phone.
A new iPhone will be out in June so I would recommend waiting if it is to be your choice.
Re your second question it was asked only a few weeks ago. click here