After owning an iPhone for a year I can't understand why anyone wants a physical keyboard or pointing device on a phone/small mobile device.

I can type quicker on the iPhone keyboard than I ever have on any tiny phone sized keyboard. Tapping the screen is far faster than messing about with a track ball style device. I can tap on even the smallest links in zoomed out web pages (you just have to have faith that the iPhone will know what you wanted to tap on and 99% of the time it gets it right even when you are convinced it can't).

Add to that that not needing a keyboard and pointing device makes the device smaller and more reliable.

The only case that I can think were a trackball style device (or a stylus) would be better is when doing something like VNC/Remote desktop where the software can't be smart and know what you are clicking on.

Whenever I see a device with a pointing device I see it as a failure of the software, if they got the software as right as Apple have then they wouldn't need the pointing device.

I will admit though that some people really struggle when first using the iPhone. They just don't believe that gently stroking the screen is the way to go. They press too hard, hold the tap too long and just don't get on with it. I have a friend who was unable to get it to do anything and I really don't understand how he was getting it to behave so badly, I tried emulating how he was heavy handedly tapping, but every time I did it responded perfectly. All very odd.

I must have a play with a Droid or Nexus though, I haven't compared the iPhone to its recent competitors.