Jane Quigley has posted on her blog Setting Contexts a quite positive report of her first two weeks with an iPhone, declaring that her 8GB iPhone has exceeded all her expectations. In particular, she notes “iPod sound is … a definite step ahead”; “While the keyboard was a little challenging at first, I was a pro after just a couple of days”; and that “battery life … has been great”.

While there are apparently already well over 100 iphone apps available, she lists some of her early favorites, as well as some other resources. The ones Quigley recommends include Mockdock, PocketTweets, gOffice, Meebo, and Ta-Da. Perhaps not surprisingly, there’s already a new GTD (Getting Things Done) app for the iPhone, iNozbe, as well.

The iPhone launched to a tremendous amount of anticipation, and even a funny video by long-time Mac & Palm author (and tech journalist) David Pogue. Despite the hype, it seemed that most all the initial user feedback was, indeed, similarly positive.

Now we’re starting to see some detracting reports. Some think usability issues will make the iPhone unsuitable for business. That raises one of my own questions - how good is the iPhone, actually, as a phone? It’s one thing to just try calling, but what happens when you’re busy - can you use it easily one-handed, or while driving, or is using the iPhone about as bad as texting while driving?

There’s also the question of whether the iPhone (without physical keys) will satisfy teens, young adults and anyone else who’s a texting addict. I’m certainly curious about the practical usefulness of the keyboard, probably what I most miss in my current Palm handheld. If Apple does succeed in making a good (not barely adequate) touch-screen keyboard, it will be a major step forward in interface design.

Now to my own impressions. I’m not in a hurry to jump to the iPhone, but have spent maybe 10-15 minutes on it a couple of times. It’s clear that I’m getting a little better on the keyboard, but am not yet convinced I’ll really get good at it. It was really surprising, though, that the horizontal keyboard isn’t available for all the applications.

That said, I’m sure there are a number of improvements Apple will continue to find to better the keyboard experience. This is where thinking about the little details, an area where Apple excels, can really pay off. I wouldn’t be surprised if a lot of such features are already there waiting to be discovered. GeekSugar has already noted one tip for speeding up punctuation.

The second time I used the iPhone, it slowly dawned on me that what I really miss isn’t so much the keyboard, but the mouse. Just editing URLs in Safari was quite annoying. I don’t remember exactly what it was, but the keyboard layout didn’t seem to help much for editing, either. On the other hand, the multi-touch screen works quite well for navigation, but you can’t really get the full benefit of it when browsing the web on the slow Edge network.

One thing that surprises me is how little discussion there’s been of basic Palm functionality on the iPhone. Does the iPhone come with apps that can replace the basic Palm Datebook, Address, To-Do and Memo functions, and import their .pdb files?

There has been a lot of discussion about whether the iPhone will run OS X applications (and presumably Mac apps like Excel). Right now the answer is apparently no, but I don’t see why Apple couldn’t set up some kind of partitioning or something on the iPhone that would make that work, while still protecting the reliability of the phone and connectivity functions.

Perhaps the real hold-up in such a scheme for running OS X apps is memory, and with more flash memory will come OS X as well. Certainly, 4 or even 8GB seems to be an awful limited amount of memory for a multi-function device that’s also supposed to be a media player. With the way flash memory prices have been falling, waiting for a bump up to 16GB (at least) would probably be a good idea. Apple has a long history of introducing computers without enough memory, and I suspect the iPhone is the latest example!

Obviously, the Palm and Mac compatibility are important issues for current Palm and Mac users like myself, who are looking for a handheld device that really moves forward the “handheld computing” part of the equation as an important part of moving to one unified device. I expect the iPhone will satisfy these needs, as well, given time.

While the iPhone as a beautiful gadget and interface is itself rather compelling, perhaps the main question, really, is how long will it be before there is an equally-compelling must-have application that drives the second wave of its sales?