Pre exceeds iPhone in almost every aspects, except as a game machine. Calling it "closest to iPhone as a competitor" is a vast underestimate of what Pre really is.
Doing one thing at a time when desktop-level multitasking mobile device is out there, giving up the opportunity to enrich life by 10-15x, is the price people pay for being loyalists of apple, on top of other stuff.
iPhone is a glorified launcher, whose idea was at least 7 years old. Only fascinating feature, was, is, and will always been, a desktop level browser. But that alone is fading.
apps can be obtained here and there, fat and bloated OS on the iPhone won't be solved by apple in a year or two, if ever. I guess apple is glad they have fan base huge enough to support it through the time when it has no superior products. Which is no surprise, like 1990s.
Im glad I am about to use something really exciting that is close to a desktop replacement for most day to day tasks.
two words of caution:
1. dont judge a product based shape ofit, AND based on a photo.
2. last time I made a poll two years back, guess what about a mac attract people here at MR? Majority, large majority said they are attracted to the OSX. That tells you how important the OS is, putting too much of attack on shapes (especially based on a photo), is just weak.