I've said this before, but basically if you want a phone to "just work" at the expense of being locked in to Apple-approved apps then go for the iPhone. If you want something you can mess about with, at the expense of occasionally having to mess about, Android's your man. If you want to download "the" application for a given task, iPhone; if you want a choice of ten apps, half of which might be great and half crap, Android.
Android is a geek's phone, iPhone is for people who aren't interested in playing with technology. </generalisation type=rash>
You'll not go far wrong with either handset. To my mind, it's not which is "better", it's which is right for you. There's both in this house, I have an Android phone and OH has an iPhone, and neither of us would dream of swapping.