Yeah, but can you run flash on it??? No. A TABLET PC that you can't run flash on? It's ridiculous. Everything worth having you have to pay for. Development is restricted and licensed, it's a nightmare for anyone wanting to actually do anything on. I have the iPad, many of my friends and family have the iPhone. A few of them tout it like fanbois until I show them how a phone should work. I would easily have held up my desire next to an iPhone and shown why it was better. In that instance though it was apple and the software holding the iPhone back as the iPhone4 hardware is fantastic (I think everyone would agree with that). The build quality also was very lacking on the desire, it didn't look bad until you held it next to an iPhone.
FFWD onto the latest models and the iPhone hardware is blown out of the water. Just about every element is beaten now by a few contenders on the market (Sensation and SGII are the obvious ones). The IP4 has a better screen than the Sensation but the SGII wins that one overall (I really like the touchscreen sensitivity on the IP4 though).
You've broken your phone and you can drag & drop etc. Lets look at the main reason for getting an iPhone, stated by yourself numerous times, 'Simplicity', 'It just works', 'Ease of use'. All those statements are true but the fact that to make the phone truely useful from a geeky technical point of view means that you have to be a tech geek to get it working properly. The other phones may involve a bit more of a learning curve in order to get a grip of the wealth of features and how to use them.... but that's only because you are able to use the various features of the hardware. Very simple example that has been mentioned, sending anything other than a picture over Bluetooth.
I would have taken the standard desire over an iPhone nevermind the phone I have now. In a perfect world I would have had a hybrid of both (previously). An iPhone running android with full access to the hardware realy would have been a phone to be scared of. Style, build quality, performance with the flexibility and useability of android would blow anything on the market out of the water.
The trouble is the modern phones have now caught up in the areas they were lacking, while they are still leagues ahead on the software front (for anyone other than a grass eater).