Agreed with your comment. For the features that the iphone has, Apple has done them very well. Probably simplicity at its best. The media function is IMO the best out there in terms of simplicity (of course, just like an ipod). And internet browsing has never been so nice on a tiny PDA/smartphone screen. This is coming from somebody who has been using PDA/smartphones for many many years.

Of course the Nokia is packed with more features and yes, they are really useful features (3G, GPS etc) if you really need them. In the end, it all depends on the user & what features they really use in real life. If you really don't need the extra features of the Nokia, IMO iphone is better. However if you can't live without 3G,GPS etc there's little point in buying the iphone.