The Android uses the old hardware designed for the unsuccessful windows mobile. That's why the droid is limited to about 200MB of installed apps. You can't even upgrade the core OS of Android, aka last year's android phone cannot take this year's android OS because of weak hardware. The Android is sooooo advanced.
iPhone, on the other hand, has a modern processor and platform. FYI iPhone is rated the BEST consumer and business smart phone by J.D. Power.
Where are you getting this information? All of it is wrong.
You can upgrade the core OS, I've done it and know many others who have. I went from 1.5 to 1.6 to a beta version of 2.0 on one device. So that point is inaccurate.
As far as the "old hardware" point, the Motorola Droid uses the same ARM Cortex A8 that is in the iPhone 3GS and Palm Pre, so how can you say that one has a modern processor and platform and one doesn't?
Frankly, the total system lockdown present in the iPhone, with zero customization, is more reminiscent of the "antiquated" platforms than android.
And as far as the 200mb app limitation...this is a common iPhone user point to make and it's wrong. The app limitation doesn't exist, because Android apps do not behave like iPhone apps which load as much as 700mb of irrelevant crap into your phone...the core app code is loaded into the phone and the additional content (worlds for games, maps, etc) are loaded onto the SD card. In function, it is exactly the same as the iPhone.
As far as JD Power ratings, we all know how useful those are. If you read into the ratings, HTC was rated above Apple in "handset features" and RIM absolutely smoked them both in "battery performance." An aggregate rating is not a useful piece of information for making an informed decision to purchase a product.
I suggest learning of which you speak before spreading misinformation. Just because you love the iPhone doesn't mean that nothing else is allowed to exist or possibly be even better than it. I have both an iPhone and a Droid and both do different things better than the other.
But the openness of the Android platform is a big, big plus in its favor.