The critical points to me in deciding if you want an iPhone or a high-end Android phone:
Do you want a phone that requires less tinkering? Less thought? Less risk you accidentally doing something to harm the software? That the lemming-like masses will recognize instantly as a status symbol? That generally just works (as long as you only want to do what Steve says is okay)? ---> iPhone
Do you like discovering new software? Consider yourself a descent judge of what's reasonably safe to download on your phone and what's not? Maybe even want to develop your own apps? Believe that freedom is more important than absolute safety? Are getting a phone because you want to use it, not because you get a thrill out of whipping it out in front of the guys at the water cooler (not that there's anything wrong with that, but it shouldn't be half the reason you buy the phone)? Believe passionately in open source?---> high-end Android
My dad pre-ordered a iPhone 4 after years of resisting because he didn't want to pay the $30 a month plan fee. I half-heartedly tried to persuade him to go with Android in the months before, but once he placed the order, I was relieved. My dad loves tech, but he's extremely limited in his computer skills (getting his current phone to connect to his new car through bluetooth was the achievement of the year for him). I was starting to have nightmares about the phone calls I'd get if he got an Android phone (why is my battery already dead? I installed this app I found on brickyourphone.com and now I can't even get the darn thing to turn on!? What's wrong?). I'm praying that Apple doesn't let him get into too much trouble.
Okay, long winded post for short point: the iPhone is best for some people and others prefer one of the many different Android devices. It's all about choice, and a better iPhone just raises the bar so that everyone benefits. What many iPhone folks with their lack of choice don't realize is that since there's no one Android phone, iPhone-Android comparisons will always be difficult. But some of us like our "fragmentation" just fine. That's just what advancement looks like when you've got more than one company working on development.