The iPhone's living up to its award as the Most Anticipated gadget last October at the T3 Gadget Awards by snagging the status of Invention of the Year from Time Magazine. While accepting that the iPhone is not without its faults, Time outlines five good reasons why this Apple gadget deserves the title of Invention of the Year.

The five reasons outline the biggest achievements (and side effects) the iPhone had on the industry. The first reason (and the most important one!) is that the iPhone is pretty. Unlike most other gadgets out there, the iPhone raises the standards with the cool little design it has, inside and out (that is, the hardware and software).

The iPhone also reinvents the concept of the touchscreen. Oh, they didn't invent the tech of course, but they used it to give a new tactile type of interface with computers. Much like how the Wii reinvented motion sensing with its Wiimote.

The third reason is that the iPhone ups the ante with other phones. By going into an exclusive deal with AT&T, they were able to build the iPhone to their own specifications. Now other phones want the same type of freedom that AT&T gave the iPhone, which means better phones for everyone.

Fourthly, the iPhone is not just a phone but a platform as well. It's not just firmware: it runs on the OS X, squished down to fit inside the little gadget. And finally the iPhone is the herald of new iPhones to come. New iPhones will come; better ones. Cheaper ones.