Talked you out of it? Not a very good salesman
Yes, the iphone does everything. Surf the net, play music (my entire itunes library is on it), take and store photos. It's even got a thingummy which allows you to pinpoint on a map exactly where you are, and then you can types in Starbucks or petrol station or something and it will give you a walking/driving/bus route to the nearest one. it truly is amazing. I can watch youtube clips, get instant weather forecasts, you name it, it does it. And it's all touch screen. it has to be seen to be believed.