I have to admit, iPhone is the best phone I have ever used. I dig for features. That's the reason why I dumped my 18 day old iphone for a newly launched N95 8GB. No doubt the N95 8GB is an excellent phone. But at the end of the day when I look back at what I use the phone for everyday, I realized that the iPhone excels in that, no matter what. The activities are:
1. 'Web Browsing / Mail' The most frequent function used after 'making/receiving' calls. The iPhone kicks everyone's ass in this department. What an amazing experience. The ability to open new windows and seamlessly switch between them as well as breeze through the web pages using your finger is absolutely unrivaled.
2. Responsiveness: The phone is pure Makhaan. I haven't seen a device as responsive.
3. Oophm factor: No matter how much you deny, the sight of people giving you the glance when you are busy fiddling with the phone is pure bliss. Its for sure drool maal.
Now lets go to the other features like the camera. The N95 8GB has a good camera, but not as good as a digital camera. So the phone cam is good for candid shots, where you know you would be clicking snaps (like a picnic ) you anyway carry a digital camera. Besides the night capability of the flash is pretty useless. N82 owners are better off. But I still prefer a full blown digital camera.
Yea, the iphone misses the video recording feature which the N95 8GB owns any other phone with. Smooth 30 frames per second.
GPS, Nokia gives the the 3 month free voice navigation package. After that its freaking expensive. Though I must admit its awesome. Almost every nook and corner is covered. Sadly its only for a few cities, leaving the rest in lurch. I wonder when the iphone will have voice navigation (if it does let me know

)
Gaming is so freaking awesome on the iphone! I dont even need to explain. Besides the somewhat lame games, there are so many games that totally rock. There was this helicopter game, I dont remember the name that I played for hours together. The touch feature coupled with the gyro meter and the large screen make for an excellent experience.
Music is good in both. Though I rarely use it as I drive.
So the bottomline is, I use the phone mostly for web browsing and checking mails and after that is gaming to while away time and the occasional candid snap. For all of the above the iPhone rocks.
If you are wondering how I played with the iphone after I sold it, my GF has one and I used to keep swapping it with her.