We will let the market determine that. Some consider Leica's ugly, yet no canon faboys can dimsiss the build quality.
Just because it isn't on Android, doesn't mean it is not impressive. Google has Google Voice and Nav as their killer apps. The fact that you can do this on a phone (any phone, Android, Symbian/Nokia) is short of impressive. Some Netbooks can't even play 720p video or even attempt to edit them. I have a $400 Dell Mini netbook that can't do what a $200 iPhone does.
Here is a video of it in action. If you want to skip to the end result, go to 3:20 in the clip.
YouTube - iMovie for iPhone 4 - Demo at WWDC 2010
The more I think of it, the more I do think this type of technology is
magical. We like to think of the tech specs and the nitty bitty gritty hardware nuances. The first time someone post a "made-on-iPhone" High Quality video, the result will speak for themselves. It doesn't matter about the iPhone, what matters is the end-product.
Last year, I bought a $300 720p pocket camera. I posted it for my friends to see. Everyone with $1500 1080p cameras were impressed with what I did with 720p footage. I didn't need to tell them or sell them on a macintosh. I just said, I did it in iMovie. That alone, 6 people bought macs afterwards. I go to parties, weddings, and none of my friends with $1500 full HD Canon camcorders say squat. Sure, you can do this on any platform, any computer, any software. I even have 2 DSLRs that shoot HD video and I don't lug them around because I know I can make quality, polished videos with "magical software."
Both the software and hardware solutions empower people to do things. It doesn't matter if it is a quad core 3 ghz phone, if it can be done on a 300 mhz phone, it is indeed magical. The result is the end product and when people see "magical" videos of their bridal shower, vacation done on an Iphone, it will sell the phone itself. I sure don't want to lug a laptop around if I am now going away for a 3 day weekend.