I have a lot of friends buying the latest Android phones.
The new Samsung Galaxies and Nexus phones are really great.
Compared to the iPhone, the hardware has already evolved way beyond what Apple is offering. (Specs)
But I still think that the iPhone 4 is superior in design and quality.
Also, the new Android phones are too large for my taste.
I have seriously considered buying a Samsung Galaxy II, but every time I play with Android, I really miss my iPhone.
I find the User-Interface complicated and hard to learn.
Lots of menus and options.
iOS, at least in my opinion, has the better design but not necessarily more functionality.