It depends on your use, the iPhone has a more polished interface, more apps, and actually pretty decent gaming performance, but then again, it’s been out longer than the Droid
The iPhone IS for all intents and purposes, Apple’s first attempt at a “Tablet Computer”, it’s basically a pocket sized Mac running a trimmed down/streamlined version of the Mac OS, I love my iPhone, it’s a heck of a lot better than my old Motorola Razr
I’ve had relatively decent luck with the AT&T network, our house is in a cell-phone dead zone anyway, any and all cell phones, regardless of network or phone model, have a tendency to drop calls here, I just use Skype over my AirPort network when I make cell calls from here
the nice thing about the Droid is that it’s based off an open source network, anyone can code apps for it, and not have to go through Apple’s App Store approval process, it’s also not locked to a network, it also has a theoretically sharper screen
If i had to do it all over again, it’d be a tough decision, I like the open-ness of the Droid and the Android OS, but I LOVE Apple’s implementation of the Multi-Touch interface, and the iPod features as well, it’s gaming prowess (my most current gaming consoles are a PS2 and a GameCube) was a happy surprise as well
best bet is to play with them both in store
If you go with the iPhone, make sure to get an OtterBox for it, the iPhone is great, but feels fragile when it’s “naked”, the OtterBox makes it feel like a true “ruggedized” phone, at the cost of making the phone slightly bulkier