Android is an OS that is running several phones right now, from at least two different companies. iPhone OS runs in only one phone. Apples and oranges, IMO.
But to me the problem with Android is it cannot do hands-free voice dialing and that is the deal breaker.
You know there is more than one version of the iPhone on sale right now. As for the iPhone being sold only on AT&T, well that was Apple's decision wasn't it? They tried to impose intolerable conditions on Verizon to start off with, so Verizon refused to bite.