In true Apple fashion, Steve Jobs and co. annually ditch the biggest electronics trade show in the world in favor of their own party, Macworld. The strategy seems to be working out just fine, because today most everyone here in Vegas is talking about the much-ballyhooed and now bona fide iPhone, and with good reason: This phone is hot.

As expected, it’s a phone. It’s a video iPod. It’s an Internet device. It’s a mobile OS X computer. And it’s beautiful. The sleek phone is all screen, featuring an adaptable touch-based interface that, if anything like the iPod’s ingenious scroll-wheel, promises to change the way people control their mobile devices. And beyond the interface, the iPhone packs in practically every high-end mobile phone feature and more: Wi-Fi, EDGE data capabilities (via Cingular, Apple’s exclusive partner through 2009), full iTunes integration including CoverFlow, free push email from Yahoo, a Google Maps application, and, well, the list keeps going.

Playing second fiddle is Apple TV, the living room media box announced last September which also debuted today. But it’s clearly the iPhone’s day in San Francisco. And judging by the amount of people here in the press room watching Steve Jobs’s keynote on their laptops, it’s the iPhone’s day in Las Vegas, too. —John Mahoney