Dan Lurie is reporting over at TUAW that a booth attendant told him that users will not be able to install any applications on the iPhone.
I find this EXTREMELY hard to believe, and I will wait for confirmation from Apple about this before getting too bent out of shape about it, but if Apple wants to compete with the other not-so smartphones out there, then this is going to have change.
I can install applications on the crappy Motorolla cellphone I have in my pocket right now. I can install games, gmail, and a ton of other applications. There is NO WAY that Apple is going to screw this up by not allowing the device to expand past the basic features they have listed.
My guess is that the booth attendant is mistaken. Either that…or Widgets are going to MUCH more powerful by the time the iPhone hits (which, interestingly enough, will probably be after Leopard launches).