Jobs has now confirmed outright in two interviews that the iPhone is a closed platform and that the general public will not be able to develop for it nor install any random software.

As far as it being OS X, the empeg runs Linux, but you're not going to get far installing The Gimp on it. It being "OS X" doesn't mean it a "Desktop installationk of OS X." Not to mention it runs on a Samsung processor anyway and wouldn't be compatible with any Intel or PPC binaries.

Jobs went on to say that Apple would be selling/providing additional software, but that the software would not all be written by Apple.

This drammatically decreases the tech appeal of the phone. Not the sexiness mind you.