I've had an iPhone for close to a year, and the Magic is better in most respects. Mind you, the iPhone is a great device, but it has become rather stale. Below I will list the pro's and con's of the Magic in comparison to the iPhone.
Pro's
-you can multitask (e.g.-I can surf the web or IM while listening to Shoutcast radio)
-much quicker UI in comparison to the iPhone
-Android is more open, you can install apps outside of the Android Market
-ability to view MS Office apps and PDF files
-push Gmail (priceless)
-trackball is nicer to scroll with than constantly swiping
-better onscreen keyboard
-a more configurable user interface
-better internet browser
-I can sync with Ubuntu!
-better phone book
-syncs everything over the internet to your Gmail account, so you can edit everything on your computer without installing one app
-really easy to unlock the phone
-Youtube videos are HQ, iPhone Youtube videos are standard quality
-OTA updates
-highly hackable with a variety of ROM's (waiting for Haykuro to crack the Rogers version)
Con's
-only 2.5 GB of memory (expandable to 32 GB)
-dragging is not as smooth
-proprietary headphone jack
Wishlist
-support for XVID video
Pro's
-you can multitask (e.g.-I can surf the web or IM while listening to Shoutcast radio)
-much quicker UI in comparison to the iPhone
-Android is more open, you can install apps outside of the Android Market
-ability to view MS Office apps and PDF files
-push Gmail (priceless)
-trackball is nicer to scroll with than constantly swiping
-better onscreen keyboard
-a more configurable user interface
-better internet browser
-I can sync with Ubuntu!
-better phone book
-syncs everything over the internet to your Gmail account, so you can edit everything on your computer without installing one app
-really easy to unlock the phone
-Youtube videos are HQ, iPhone Youtube videos are standard quality
-OTA updates
-highly hackable with a variety of ROM's (waiting for Haykuro to crack the Rogers version)
Con's
-only 2.5 GB of memory (expandable to 32 GB)
-dragging is not as smooth
-proprietary headphone jack
Wishlist
-support for XVID video