I upgraded to Android 2.2.1 for the MyTouch (also known as the HTC Magic in lesser developed parts of the civilized world) about two months ago, and to say that I am thrilled would be an understatement. I've never had an iPhone... but at this rate I don't need one and probably never will. Apple might woo with a setta whiz bang third part apps, but in terms of sheer practicality nothing beats this little device.
Standard with the latest Android upgrade is Speech To Text, a voice-recognition software which makes it moot to type on your phone. Just speak the words when sending an email, text, browsing the internet, searching for directions etc.. and the software converts your spoken words to text. It's not quite 100% accurate, but it's around 95%, pretty darn good. This has been out for some time now, for instance, back when I was with Sprint there was a version out about 5-6 yrs ago, but it did a very poor job in my mind, and took eons to come back with suggested text even then. The current version is boss, plain and simple.
Another feature which I literally just realized was available, is the ability to "tether" my phone to my PC. When you tether your phone you essentially connect your computer to the internet via your phone's USB cable, accessing the 3G (or 4G if you have it) connection. My 3G connection thru the phone was even faster than my home DSL (base) connection. So essentially, wherever I have service on my phone, I have internet access for my laptop. No more staring at the walls in airports.
I need to test it a bit more to see what if any effect there is on connection speed during peak hours. I also need to know if there are any drawbacks to having my phone connected to my laptop all the time, like battery wear etc. Assuming all goes well then Verizon can kiss my monthly payment goodbye.
I still sticking with the iPhone because I not looking forward to learning a new interface. I use my phone so muhc that the risk of a big disruption in function is too much. I looking forward to a new iPhone on Verizon sometime next year because right now AT&T not letting me upgrade to the iPhone 4 without paying a 4200 penalty.
Also I think there is not much between these phones and you tend to get locked into what yuh comfortable with but the iPhone also has the Voice command feature. Can't say how it compares to other phones but you can make calls play songs, albums using the commands. I also don't know if it types text within emails or the web browser because in general I rarely use it. The iPhone 4 also supports tethering.
The app I would actually like to see on these is something that goes the other way, translating text to voice so you could "read" a page of text. without having ot look at the phone.
As for the apps most of the good apps are good because they deliver content that is popular elsewhere. The portability is a winner and the good apps are available on both iTunes and on the Android marketplace. The big thing with apple is brand strength, form and simplicity, the latter of which has its drawbacks. Also the retina display gives it the best display on the market.
When I have time I will start an "Apps" thread because I finding a lot of great apps out there and I realize that it have even more that you never hear about.