I didn't claim the i in iPhone stood for internet: Steve Jobs claimed that this was "an internet communications device" in his keynote when he introduced it, and if that's not marketing it as an internet phone, what is? Wi-fi is fine for when you're in a hotspot, but free hotspots, while becoming more common, aren't exactly ubiquitous, whereas 3G coverage is far more common, at least in Europe.
220kbits is rubbish and you know it.
a) If I can stream media (even video) from my server at home over 3G and only be limited by the upload speed on my home connection, why would I want to settle for less?
b) The way websites are going/have been going for years, 220kbit/s is still going to leave you staring at image placeholders for a long time in between site loading.
c) Steve Jobs' own keynote showed internet useage that would be painfully slow over EDGE (Google maps, sending photos by mail etc).
Apart from the A2DP headphones mentioned, there are also A2DP capable in-car systems and home speaker systems. For someone who's really into the whole convergence thing like myself, it's a fantastic opportunity - I can keep listening to something on headphones while walking around, switch to car stereo when in the car, switch to home speakers when home, all without having to plug anything in anywhere. It may not be up to crazy "audiophile" £3000-for-a-power-cable standards, but it sounds good enough for the situation and cuts down on having to copy everything to various places.
There are things I like about the iPhone, 4 or 8GB storage is good (although non-expandable is a shame), the UI looks lovely etc - however as I said, the marketing, along with the desperate attempts of the cultists to justify its lack of features compared to the competition just leaves me cold. It's not the second coming, it's a phone with a srubbishrubbishrubbishrubbishy interface that isn't particularly well specced for the time it came out or the price it costs, and cannot possibly justify the crazed hype machine.