If I couldn't get the iPhone and wanted a replacement that'll erase my disappointment on not being able to use the multi-touch screen and the OS X interface and browse the Web with Safari, I'd definitely think of the Neonode N2 as the perfect gadget.
First of all, it's really small, the smallest announcement at the 3GSM Conference in Barcelona at 47mm x 77mm x 14.7mm and weighing 70 grams. Second of all, it runs on Windows CE 5.0 just like the first Neonode, which unfortunately suffered from the inexperience of its Swedish manufacturer and was never put in the general market. Windows CE 5.0 differs from Windows Mobile in that it competes with the Windows XP Embedded, which is XP Professional optimized for devices with very specific functions like ATMs and Slot Machines. The N2 will have Windows Video and Audio features as well as ActiveSync for mobile to PCs connection.
Neonode's touchscreen can also brag of gesture-based controls. You can close and open menus by sweeping a finger over the screen.
One disappointment of the N2 is connectivity. With only a quad-band GSM and GPRS to compete with the iPhone's GSM/EDGE. The N2 like the iPhone will have a 2.0 MP camera.
Read more about N2.