Yep, it matches the hype. After 6 hours in line, it took less than 15 minutes once 6pm hit and the doors opened.
Words cannot adequatly describe how awesome this thing is. The screen is beautiful, the multi-touch interface is extremely easy and intuitive. The iPod is incredible, the internet is incredible and the phone is incredible. The AT&T network could certainly be faster, but was fine for most tasks except YouTube and the web. But it's faster than you might think.
The virtual keyboard is really a snap. I'm having no problem typing things. There's an occasional fat-fingering of a letter, but it's simple enough to correct or accept the iPhone's spelling suggestion. I've even started typing with two thumbs (blackberry style). I need some more practice for that, but it won't be too long before I master it.
My only issue so far is the headphone jack is a bit deeper than most, and my tape adapter won't work with it. I'm sure someone will come up with an extension, but I really don't plan on using it too much in the car anyway.
This thing is sweet.
Activation was a breeze and took about 2 minutes. They've really thought of everything. Call quality is great, sms is great and email is super easy. If you have your Mac setup with address book and iCal (which I have automatically update from Entourage) and Mail, it just zips everything over. You don't really have to do anything. I was able to get my OneSpring Exchange email with no problem.
The wi-fi is very nice. When the iPhone detects an available wi-fi connection, it asks if you want to connect. If the network is secured, you have the option to enter the password. If the network name is not broadcast, you can set it up to connect. All very simple.