I'd buy an Iphone but...it's still too crappy for games imho.
I wish Sony would get with the program and release a PSPhone.
How do you know it's crappy when you don't have one? Keep in mind that the games that work best on the iPhone (word, board, puzzle, strategy, etc.) are much, much different from the full-fledged games that work best on the PSP. I'm not sure why everyone insists on comparing the two.
The one thing that I do know is that I'll never, ever carry around my PSP in my pocket, so Sony has a huge uphill battle with any "PSPhone" that they come out with.