100 song limit only from the iTunes app. You can have more than 100 on the embedded MP3 player, a la the E398. $250 might not be so bad if you think of it as an E398 with a 512 MB card. And surely that price will be coming down for the holiday season I would imagine.
With the release of the iPod Nano today, I'm suprised that they even went with removable media... and 512MB microSD. You mean that they couldn't find a way to put a standard SD card in the phone?
This, to me, is all hype and an introduction-to-market device.
Think of it this way. I, like so many others right now, am kicking myself for buying a Shuffle a when I should have just waited, saved up a little more money, and got the Nano. It's the same deal with the E1.
Hell, even the Sharp TM-200 has a 1GB capacity and allows for iTunes files to be played on it. Sure, it's not available in the US right now, but you can still import it.
See, but you have to remember. The main reason Apple has been so extreemly successful in the mp3 player buisness is that they are perfect at advertising and grasping the public's attention. Without marketing, a product will never sell very much, regardless of how great it is.
I agree with you. People should wait until the next set of Itunes phones come out to buy one. This is a great start, but obviously it could (and will) be improved.