I have to say, the new iphone is pretty awesome. With 3 months left on my existing iphone contract, I fully intend to upgrade, but in the 15 months since I bought my phone, something has changed. The iphone no longer stands out the way it once did. There is a lot more competition, and some of the handsets out there are really giving Apple a run for its money. Just take a look at these: http://www.htc.com/europe/product.aspx.
Yes Apple may still have by far the most apps, but other systems such as Google’s Android are catching up. Couple this with the fact that Apple STILL don’t support Flash and it’s no longer clear to me that the iphone will continue to be the "Rolls Royce" of smartphones.