Here's some rambling on the subject from me:
I have an Iphone only for the sake of plugplayer. I am not using it as a phone, other then a complement sometimes when i need internet and mail on travel.
I am absolutely certain that Android will be taking over the buisiness end of things sooner or later. Although i think iphone is great, it has some devastaing flaws:
1 Terrible sound quality (microphone sending/DAconverting/GSMcodec wise. Sound at the reciving end gets very bad. Which the happy camping iphone user is mostly totally unaware of.)
2 The lack of a physical keyboard. Why, oh why cant apple release an iphone being exactly the same as the current one, but having a slideout keyboard?
3 The lack of FM radio.
With the above fixed, the iphone would be the ultimate phone. The likelyness that it ever will happen is miniscule though, so i keep waiting for SonyEricsson, Nokia, HTC or any of the other players to bring forth a high end Andriod with a proper keyboard.
For instance, the recent SonyEricsson Vivaz Pro would have been a good candidate, if not for the lowres screen and Symbian.