I had a treo and liked it. The biggest drawback was having to reset every day or crashing on you. The other reason I went with iPhone is to carry one device instead of Treo and Ipod. I do not use my treo anymore.
I had a Treo 700p, and I don't think it was rubbish, I felt it was a wonderful phone. I know people had many problems with that model, but I really didn't download that much stuff to it, so I had no problems. That being said, I like the iPhone way more. It does everything I need, songs, video, youtube, email, internet......and a phone. I may have drank the Koolaid, but I love my iPhone.
The Treo is a great device. Unfortunately, Palm has suffered due to their lack of innovation. There are some great third party apps and the QWERTY on the Treo is one of the best. It seems as if they are in the right lane of a 4-5 lane highway and other manufacturers keep passing them by. Apple, BlackBerry, Motorola. They all found niches, price points or features that made Treo owners wonder, "What's going on with Palm?"
It's been said a million times, but a thinner device coupled with a new Palm OS built on Linux is sorely needed. If they are indeed waiting until 2009, than it doesn't appear very good for them. The next year could see iPhone 2, Android devices, new Touch based Moto Q's and BlackBerry is putting more and more emphasis on consumer centric smartphones.