iphone is just a tech toy... not that great of a practical phone. I crack up when I watch people using them... they have to wipe their screen every 20 seconds because it gets so smeary.
Apple is good at making fashion products... but their technology isn't anything special. You can't replace the iphone battery, it's camera is inferior and can't record videos, you can only use at&t, no real keyboard etc. And then there's the sticker shock.
It's all marketing, hype, fads, and fashion as opposed to a superior product. Heck even the Microsoft Zune has wireless connectivity and you can throw mp3s on it and not worry about a proprietary database.