The new iPhone will sell like hotcakes. The display is gorgeous. The user interface is polished. The (limited) multitasking will meet the needs of about 99% of users. The performance will be more than adequate and more importantly, predictable. The only thing holding it back will be its network.
Agreed. Like you said, 99% of cell phones don't know or care about multitasking, let alone the open source possibilities of Android. They just want something that works. Add a beautiful interface to that and you've got a very appealing product.
For as much as I love the customization of my Droid, I am still jealous of the fluidity of the iphones interface, and now, the screen.