I definitely didn't expect an iPhone. I WAS hoping for something that was a little more intriguing to me, and an unexected product announcement. After all the silence lately, I guess we were hoping for something interesting to be announced.
Mac Pro and Xserve were pretty much exactly what was expected, and I also have no interest in spending $2500+ on a new system, so not particularly useful to me =)
Some of the things look interesting - Core Animation and some of the others look like they give poention to interesting new apps at some point down the road. Virtual Desktops are definitely a nice add. The rest of it? A handful of nice improvements/interesting toys, but definitely not going to make me rush out and buy the new OS. I'm hoping they have some new product announcements over the next month, and that there really are "top secret" things are actually, well, interesting (and not just unfinished minor features that were too unstable for even a fixed demo).
I also think we were hoping for some "killer" new feature that just will make Leopard head-and-shoulders above Vista in the minds of consumers. I'm not really seeing much here, which makes me a bit more worried about the Vista launch.
Front Row included in Leopard is good. I was hoping to see more about it, though - I'm really hoping I can make my Mini a real media center/living room PC (current Front Row+iTMS is about 65% there as long as I don't intend it to do DVR)