iPhone vs. Droid
I've been using the G1 and the iPod Touch (just like iPhone minus, uh, the phone part) for a while now and have just now recently upgraded to the Droid. The actual phone features themselves are neck and neck and you can watch the CNet Video for that comparison. What I think it comes down to is two things, the apps/games and the cell phone service.
Apps and Games
The iPhone wins hands down. The sheer number of apps and quality of games is phenomenal on the iPhone. Yeah, the Droid has apps and games too but there's really comparison.Cell Phone Service
Unfortunately, the iPhone is on AT&T. Review after review show that AT&T falls at the bottom of the barrel. At the same time, review after review show Verizon at the top. It's rock solid. Expansive 3G coverage and 5 star customer service.The Verdict
It depends. Do you want a great cell phone service or awesome apps and games? In my situation, I chose the Droid for two reasons, (1) my wife gets 20% off the bill each month with Verizon and (2) I wanted solid cell phone service. Playing games on the iPhone doesn't entice me that much because I rarely play games on the go. When I play a game, I want to play in high-definition on my big screen TV with cutting edge graphics on either a PS3 or Xbox 360.What if I didn't get the 20% off each month you ask? I would be very torn. The AT&T coverage in Florida isn't half bad and wow, those apps! Hmmm.... ok, FINE, I would choose the iPhone. :)


