iPhone (IMHO) was a wonder of the year 2007. Many people argue that the device is over-hyped. One way, or another, the device has made a huge impact on the mobile phone market. It won't be an exaggeration to say that iPhone has changed the whole industry.
But Steve doesn't want to stop here. The next generation of the device will be equipped with GPS navigation, 3G radio support and probably a couple of other, less interesting features. In principle, the lack of GPS and 3G is iPhone's major problem right now. Add those two features and then it will be veeery difficult to argue that it's not a wonder device.
However, Jobs does a great job on the business side as well. Apple is obtaining a patent for cashless payment system via the iPhone. This patent will allow people to order stuff on their phones via Wi-Fi, pay for it, and skip everyone in line that doesn't have an iPhone.
Imagine, you enter McDonald's, open the menu on your iPhone, order your Big Mac menu and enjoy your meal while others are still standing in the queue. This system can be used in many spots.
Many people have serious doubts about success of this system. However, we shall not forget that in business those products and services become successful that deliver extra value and create additional utility. So, this system, if carefully implemented, has all chances to become successful.