Whats with the combo of black, white, and orange. It seems like the colors would certainly strain my eyes with the orange on black.
Orange on black (black background, orange lettering) arguably provides the most visible distinction (contrast) between colours, perhaps even moreso than black with white text, or white with black text. Black background with light orange text works really well.
I agree that the iPhone does look better than the Pre, or any other smartphone out there. This is especially true of the original 2G iPhone. The 3G "upgrade" doesn't look as good with the black or white back lid.
However, the Palm Pre isn't ugly either. The photo was just taken under bad lighting, where the reflection of the light from above is shining off some of the keys. If an iPhone photo was taken under the same conditions, you'd see a reflection due to the shiny screen. Doesn't make the iPhone ugly, does it?