Take a look at HTC android phones like the desire. In terms of what you can do with them, they blow the iphone away. You can customize them like crazy. The iphone's interface outside of an app is basically just the app icons. Android has homescreens with widgets and the interface is beautiful and silky smooth. The new devices are all 1ghz so they're really fast.
I love how when you install an app it has the ability to affect context menus througout the OS. So for example if you long press on an image, or a link, or text or any sendable/manipulatable content, you are presented with options...like if you long press on an image, not only do you have the option to send it via email, bluetooth, post to facebook etc etc. but if you installed an app that gave you the ability to post to something new, like to a new social network, or maybe you install an app that lets you add silly clipart to pictures you take, then the option to open the image in that app gets added to your context menu, no matter where you are in the os. So you can be in any app on the phonw, and see the options to interact with other newly installed apps.
The live wallpapers are not just eyecandy. You get wallpapers that show realtime facebook updates from your friends, floating around the screen. Wallpapers that show a live stream of the "logcat" (a log of everything the operating system is doing in the background) It looks cool to see the java events scroll by as the phone registers your touch. The wallpapers can do things only limited by the devs imagination. They are capable of full 3d, like the awesome earth rotation wallpaper. You can even have wallpapers that are interactive games, or react to the accellerometer. The notification system on android is awesome too.. When I use an iphone, the inability to pull down the notification bar and see a list of all the current messages/updates/shortcuts makes the iphone feel like a lot less of a smartphone! Android will spoil you and you wont be able to turn back! Its also very well intergrated with google services, and if you can demo one, ask them to show you google sky map(a big crowd pleaser)
It's really maturing nicely and looks just as good as apples shiny toys. Theres a crazy uptake of android devices right now, the app market has doubled in size (70000) in the last few months. People are installing ubuntu on there Android phones! So dont forget to give one a go. You really should demo one first. Android is the Macgyver of smartphone OS's