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At MacWorld 2007, Steve Jobs’ keynote talks about a lot of wonderful things Apple is doing these days, but he stopped the show with his demo of (finally!) the iPhone.

The guys at Engadget were there and posted a running commentary along with a LOT of pics from the address, but the upshot is that the iPhone is a combination of a video iPod (plays music & video in landscape or widescreen), a Wii controller (has an accelerometer that switches to landscape view when you hold it that way), and one of the smartest, coolest phones you’ll ever see. It has a 3.5 inch touchscreen, comes in 4gb and 8gb flavors, ranges from $499-$599 with a new Cingular contract, runs OSX (!), has Bluetooth 2 and WiFi, has an iPod interface, is 11.6mm thick (thinner than a Blackjack), and has sensors that turn off the screen when you hold the phone to your face and automatically adjusts brightness based on ambient light. Available in June.

Update: Apple’s iPhone page is now up and it gives more details: 115mm x 61mm x 11.6, making it MUCH longer, wider, and thinner than, say, a treo 750. Quad-band and EDGE (no 3G). 3.5 inch touchscreen, 320 by 480 at 160 ppi. 2.0 megapixel camera. No word on processor specs or other memory stats beyond the 4 & 8gb sizes.

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