IMO, i agree the Android OS is better then Iphones. HOwever, there are many people that are probably better off with an iPhone.
People like my wife, that want a cool phone, thats simple to use, easy to understand.
My wife initially wanted a droid also, but after playing with my eris, she doesn't want one. Says its too complicated. Something as simple as hooking up a USB cable to the computer, and dragging and dropping files, music, etc. is something a LOT of people are still not familiar with. Iphones/Ipods do make that an easier process.
So for all people that are not technically inclined, they will be happier with an iPhone.