Huawei have just developed the Pulse which I think is only going to be available on T-Mobile in the UK. I had a quick play of it last week, my first Android phone, and it's super slick, with an iPhone look-and-feel but considerably cheaper (obviously, not got the range of apps though). That's not very helpful if you want to stick with O2, however, but it does look a neat phone.
Personally, I think that iPhone is a great phone however, I don't think it's go great that I'd want to pay the hefty premium that it commands. It's certainly a better phone than my Nokia N95 but I'd have to pay more than twice as much for it and I can't see that any phone is worth that.
