I think it's great that Apple puts so much effort into usability and aesthetics. They put a lot of polish onto their devices and apps that put almost everyone else to shame. It's true that the iPhone was a game changer. It's not surprising to see other companies stepping up to the challenge. As an Android user (myTouch, 128MB RAM sucks), I often wish for the polish of the iPhone and for access to some much better app…
The multi-tasking is excellent- I was reading a book in FBReader last week and when I opened it yesterday it opened from RAM. With the Dolphin Browser, background tabs actually stay loaded in the background, and sites with auto-refresh actually keep content refreshed. For me, the browsing experience with Dolphin and the multi tasking are hard to beat. Also, the open market has some great advantages (along with disadvantages such as crappy apps), for e.g. MortPlayer (which was a great mp3/audiobook player for windows mobile) was recently released for Android without any fear of replicating functionality.
Like a lot of others, I'm glad for the iPhone vs Android war. It gives me lots of great, feature-rich phones to choose from, so why pick a side?