Yes indeed. Everybody I have shown mine to has been envious too.
If the way you compare one phone to the next is by coming up with a checklist of features, and comparing them, it's easy to convince yourself that many other phones are better than the iPhone.
But, this completely ignores the much more important fact that everything the iPhone does it does so well that it makes the other phones look like a joke. Web browsing, email reading, and basic phone features of the iPhone are all so much better than everything else out there that I don't mind the few things that it can't yet do. This is the first phone that I actually want to browse the web on, and read my email on. So although it doesn't have 3G, it's actually much better than my Nokia e61i that did (at least for me). The truth is that the Nokia felt very CPU limited, so even with 3G the rendering was very slow.
I have had spent time with several iPhone critics, and after a five minute demo every one of them has wanted to ditch their phone and buy an iPhone.
I am confident that I could be just as effective on most people that are holding off from buying it because they are waiting for something like 3G, builtin GPS, or exchange integration.