I concur, I use my friend's ipod touch every time I hang out with him, and when comparing it to my touch pro, I wish I had an ipod touch/iphone. now that I have the hero, it is definitely 100 steps in the right direction...yet there are still some things with the "iphone" that I like over the hero, like its uber fluid'ness (that is only because it doesn't multi task so I cant take marks against the hero for that), and the keyboard on the iphone, which in my opinion, is still the best on screen keyboard in the biz, though I can easily live with the hero's.
From what android has taught me, is that one day soon, with all the advancements made, the iphone will eventually become another one of those "hey remember when nintendo was the end all be all of game platforms???" heh, i miss my old nintendo