Well, I have received for my upcoming birthday the Motorola Droid. This thing is freaking awesome. After missing a few calls trying to figure out how to answer the damned thing I have found that there isnt a whole lot this thing wont do. It has Googles new Android operating system that appears to be superior to anything else I've seen so far. The only thing I've noticed that burns my ass is that there is no built in support for flash. I have heard that this will be added in the near future however. The screen on this thing is second to none. There is no other phone out there that even comes close to the clarity and screen size. The built in speaker is also quite good (as far as phone speakers go). The only other complaint I have is the 5 MegaPixel built-in camera. Phone cameras are still seriously lacking in actual photo taking ability. I imagine in the next 5 years this will improve greatly but for now it is good for the occasional semi-vivid, sometimes out of focus shots. The video capture feature is ok. Both do MUCH better when using them in an outdoor environment with plenty of sunshine. This is true with most cameras though.
The available applications for this system is crazy. I still havent even browsed through all the free ones yet. Just too many!
I have played with the iPhone a bit and from the little experience I had with it I would lay money down for the Droid in a heartbeat.