I just got a Droid a few days ago, and like one of the previous respondents, the more I use it the more I love it. I needed a new phone and struggled with the possibility of jumping to AT&T for the iPhone. My sister has one and I have to say that it is a very, very slick product. However, the fact that it is on AT&T put me off greatly, to say the least.
The fact that right after I first keyed in my Gmail address and password and the Droid automatically synced up just blew me away. Then my schedule from Google just popped up on the phone. The GPS can be very intuitive in figuring out what you want (the selection/navigation menu not so much).
Driving mode is next to useless for dealing with phone calls, in my opinion, but I don't doubt that someone will come up with a fix for that soon.
I was worried about bugs, but the unit seems robust both physically and software-wise. So far the only issue was when the display refused to rotate, but the tech said that may have been caused by lots of contacts downloading from Gmail. The problem went away and has not come back. Also, the phone was getting updated a lot in the first couple of days, which sometimes causes glitches.
They way I describe it, the iPhone is like a Mercedes, smooth and sensuous and glamorous. The Droid is like a Shelby Mustang-- one of the original ones from the 1960's with a 350 and dual quads and totally upgraded technology. You can get under the hood and mess with things, not like the Mercedes. And if the Mercedes is smart, it won't challenge the Droid to a race.
If you're the least bit tech-y you will be happy with the phone. There is no doubt that the iPhone is a great product, but it's on a crappy system. -BB