My iPhone experience started with the 3G. It did everything I had previously used a "smart" phone for, in addition to the tasks I had for my iPod and Palm V: contacts, calendar, appointment alarms, phone calls, music, email, web browsing.
That's pretty much the core of what I still use a smartphone for. My iPhone is sitting here next to me playing me music as it has done all day, keeping me in touch with my partner who is interstate, reminding me that I have to put the bins out tonight, and otherwise staying out of my way.
What else did a smartphone need to do that the iPhone couldn't?