To me, the iPhone is currently better with Multimedia stuff than the Droid is. Yes, iTunes has many drawbacks, including DRM on some of their content, but it's the best integrated Multimedia store-plus-organizer available right now. The iPhone is truly a Multimedia phone, whereas the Droid is a great phone that has a few passable, utilitarian Multimedia apps added-on.
In every area *other* than Multimedia capabilites, the Droid is clearly the better phone. It's far more customizeable than the iPhone is (or ever will be, imho). It's CPU is faster, and it can multitask. Call quality is FAR superior to the iPhone -- yes, some of that is due to AT&T's truly crappy GSM network compared to Verizon's superior CDMA network. But the hardware is just plain better on the Droid, and that has nothing to do with the network the phone is attached to. I'd bet that if you could compare a Verizon iPhone to a Verizon Droid (if the VZW iPhone existed) the Droid would still come out on top as far as call-quality is concerned.
The Droid also has a FAR better screen than any other phone on the market, Google Navigation is awesome (and FREE). There are so many things that the Droid does better/faster/cheaper... Just not most of the multimedia stuff (yet).
So basically it boils down to this: The Droid has far more potential for improvement than the iPhone does. Assuming Google/Motorola/Verizon will actually listen to their customers, we will gain on (and eventually surpass) the iPhone in every way, as new software is released. The Droid's limitations are based solely upon the software, which can easily be improved. The iPhone 3GS will be unable to match the Droid's capabilites, once the Droid's software has been perfected. They'd have to release a new iPhone with better hardware to match the Droid's potential.
Oh, and Verizon's new 4G network will (from what I hear) handle Voice and Data at the same time -- so once that rolls out, there goes another advantage the iPhone currently has over the Droid. (No clue how far into the future that will be, however.)
Just my $0.02 worth, I suppose. And despite any drawbacks the Droid may have today, I'm quite confident they will be fixed as time goes on -- the Droid will only get better in the future!
(Still lovin' my Droid!)