With the recent v20 firmware upgrade, the N97 got a lot better. Compared to the N82, the camera's about the same – not as good in low light (LED flash vs the xenon), the GPS works well, but not quite as good as the N82s. Web browsing's lots better, email etc loads better with the keyboard, I love the 32gigs for my music, plus an 8gig microSD card for my satnav maps, and the FM transmitter to get all my music in the car. The big screen is ace, after even a week I found myself wondering why touching the screen on other phones didn't press the buttons.
However, it's still got a couple bugs and niggle which show up sometimes, but most modern phones do. And it's not as slick as an iPhone UI wise. iPhone not a consideration for me – far too expensive, with crap camera comparatively. And nokia (now Ovi) maps is a killer app for me. If I went back to when I bought the N97, would I buy it again? Yes.
However, if you don't need the masses of storage (will 16gig do?) or the FM transmitter, consider the N97 mini.
I'd describe it as a smart phone for geeks, whereas the iPhone's a smart phone for dumb people 😉
*dons flameproof suit, bring it on iphone fanboys!*