You guys have made a bunch of good points in this thread... the only question I have is: Have you looked at the MSRP on all the phones you're saying are as good/better than the iphone??
I mention this, because the list price on the Samsung phone t-mobile gave free me 4 years ago was [on Samsung site], like $500. Of course, you could find them cheaper other places too and that was w/every accessory (which I was not given 90% of) --but my point is that MSRP on newer phones is always ridiculous. Apple just has the demand/supply at a point they can actually get away with charging MSRP, or better just about everywhere.
My cheap-itude normally would keep me out of this thread, but I did want to make the above point. As long as I have my working Karma (I also have one w/HD failure, for parts), I'm good. I can't wait for SD prices to come down more & give me more jiggle-proof storage.
The "new gadget" factor isn't going to grab me, until/unless things get much cheaper and smaller. I could not care less about color graphics [color blind], watching video, or a slick interface at a high premium.
I also no longer use cellular, it was too expensive & the coverage areas were inadequate, for me. There are times it was invaluable, but it was also an unwanted tether to work... "It's the second day of his vacation, but let's call him anyway --because we can..." (I do have a secret, re-activatible pre-paid, for trips.)
Tell him about the Twinkie...