Okay the whole Android being an open system vs Iphone's closed system argument is insignificant to many people. Most people do not wish to hack with their phones. They just want something that works for communication and productivity and fun apps.
Other aspects of the iphone's pros are spot on. The camera in the iphone is superior to my "pro" photographer's eye. Typical consumers might not recognize the difference so it all comes down to personal preference. I love the various painting apps on the iphone platform, none available for android, or at least not to the level of quality of the painting apps on the apple platform.
That being said, iphone 4 seems to have various basic usability issues. If they can resolve it, it's a solid platform. That is, if you have ATT's unlimited data plan.
I'm going Sprint + Android because I can't deal with the 2GB cap on the ATT side.. Otherwise, iphone would be a strong contender for me.