In my view, the iPhone is currently better. That may change over time.
I currently have the iPhone 4 (personal phone) and a Droid cell phone (work phone).
I find the iPhone has far more applications that are at a more sophisticated level. In many cases, the application that I want exists only on the iPhone.
I also find myself using the iPhone more. My most popular applications are the ipod, the camera, and the HubPages app (OK, I wrote the original version of the HubPages app so I'm biased).
I think that over time, the Android phones will probably become more popular than the iPhone. From my perspective, it feels a lot like the Apple vs. PC choice that occurred after the Mac came out and when Windows 3.1 came out.
The experience of the iPhone is much richer and there seems to be more sophisticated stuff you can do. The Android comes in greater varieties and it's rapidly improving.