The only problem I see with Nokia being so late is that the hardware will be outdated by the time the phone is out. I am already starting to consider it outdated by now.
Note that having outdated hardware means nothing to me (happy with the n810), having to pay $400+ for it does.

Right now I would only pay more than $500 for a 1 Ghz OMAP3/OMAP4 device with _decent_ battery life. Before the end of the year that'll be $400.

I personally see neither the iPhone nor the Palm Pre as "interesting" competitors in any way. It's not because they're phones though.