People have been tethering on the iPhone for years now. Steve Jobs should have said "don't do it" not "it can't do it."
Anyways, even if the device did have this feature that wouldn't push me over the top. It's still missing a camera, still running the iPhone OS instead of a more sophisticated version of OS X, still not multi-tasking (related to the OS), and won't allow me to watch flash videos or play flash games. To be perfectly honest even if it had all those things I still wouldn't buy it but I could understand why others would. As it stands now I'm just going to be confused when I see someone playing around with one.