I once owned an iPhone; and I am still happy with it.

I believe its worth every penny because the guys at Apple take meticulous care to ensure they deliver good hardware design; good battery life for a smart phone; and approved Apps; both free and buyable and the screen size is reasonable for reading emails; website and books too (depending on your eyesight).

The Android phones are good and they have just hit the market with some new hardware eg the iDEOS; and its a good phone and it appeals to a particular demographic ; which is not all.