HighHandicap
Newbie
There will always be those who still buy based on aesthetics, but that makes less difference now with this new generation of Android devices. I see the iPhone now as more of a child's toy, and the momentum is on our side. The iPhone going forward will become less and less significant as Android build a commanding lead regardless of carrier.
A lot of us over at the Crackberry forums were saying the same thing for a long time. Many of the benefits of the iPhone have already been covered by others here. Familiar interface, strong app library, desirable feature set (for at-large consumers, not us Smartphone snobs), and brand recognition. It serves its purpose and hits a very large market segment.
What would be interesting is to see how iPhone sales would do if they offered more than 1 model (I'm counting the 16GB and 32GB as 1 model). Some of the reasons Android and BB have outsold iPhone are the limited availability of the iPhone and the number of different models available from other OSs. I don't think - but I could be wrong - that any single smartphone has outsold the iphone in a straight up comparison.
Whatever the case, I've already decided that I'm dropping Blackberry and my Storm 2 when these LTE Android phones start releasing on VZW. BB has absolutely nothing interesting (to me) in the pipeline right now and I'm definitely excited by the options with the Android OS.

