re: a tourist from Argentina who said he was not even sure the phone would work once he got it home.
Maybe ... Maybe Not.
The iPhone is a sealed device. This means no user access to the battery (I'm sure this has already been covered) but, perhaps more importantly for international travelers, the SIM (Subscriber Identity Module) card cannot be changed by the user (as it is changeable in most phones).
What does this mean? It means a phone purchased in the US and used in a different country will pay undiscounted local, long distance and roaming fees. This could add up to $5 a minute to use.
And every country requires it's own SIM card if you want to subscribe locally to avoid such charges.
I believe lack of user access to the battery and SIM card is the major chink in iPhone's armour.