It strange that people perseption of the iPhone is just this... Obviously as a direct result of Apple marketing strategy and recent press on certain apps.
I have an iPhone and only have good experience of what an excellent business tool it is.
I use the following apps nearly on a daily basis:
PayPal - Seamless PayPal hstory lookup and transactions
Stocks - Instant stock exchange rsults and graphical market view
Currency - To check the current exchange rates
Wordpress - To update my blogs
TweetDeck - To check my Twitter feed and send updates
Skype - For Skype connectivity
Safari - For full web browsing
I'm currently looking at sorting out a hosted exchange solution to for push emails and instant outlook sync so as you can see this is far from a toy...
Of course, I have the luxury of being ablt to download a whole load of entertainment apps too, including 'Now Playing' for cinema listings, reviews, and show times based on GPS location, Bars and Pubs to find the nearest local in a 'non' local area, Facebook, a whole host of games and of course, it doubles as an iPod with full movie rental/purchase support which is brilliant for long train journys and flights.
It does pretty much everything and isnt just a 'fart' machine as some people would have you believe.
Rich