you have two options then ..
Galaxy i9003 and the Moto Defy.
First off even I was under the same dilemma this week .. but decided on the DEFY and im picking it up today.
Moto Defy
3.7" 854x480 - TFT Capacitive LCD
Cortex A8 800Mhz + SX530 GPU
2 Gig Internal (1.2 Gig Usable)
5mp + 480p recording.
Android 2.1 (2.2 rolling out as we speak)
Cost: 17.9k (Hyd)
Samsung i9003
4" 800x480 - Capacitive SCLCD
Cortex A8 - 1000 Mhz + SX530 GPU
4 Gig Internal (1.8 Gig usable)
5mp + 720p recording.
Android 2.2
Cost:19.5k (Hyd)
-They both have the exact same internals and defy which is still 2.1 has benched relatively better than the i9003.
-Samsung i9003 has no camera flash.
-Defy can easily OC to beat the i9003 performance(upto 1.2Ghz).
-Defy is water-proof, dirt-proof,scratch resistant and the most durable smartphone available.
-Smaller form factor makes is easier to carry around since it doesnt need a pouch-carrycase.
-I personally find the 3.7" DEFY more comfortable becoz of the increased pixel density.
-Better music on the Defy and a much much better loud-speaker.
-Defy has a secondary mike for noise-cancellation which works nicely.
-Motoblur vs TouchWiz (choose your poison)
-Defy has slightly more RAM ..?? (debatable)
-Defy has the Phone-Portal feature which I'm dying to try out.
(Browser based phone-suite over Wifi)
The Moto Defy hardware is still not fully utillized presently and so with the coming 2.2 upgrade we can expect lot of improvements to come along .. (720p recording even ..
)