You could always go with Nokia's S60 devices. I've been extremely happy with my N82 so far, and there's also the N95 or the E90. Seriously, give them a look. You can install whatever you want without ridiculous workarounds, and they are all more capable devices than the iPhone.
Last time I checked Nokia N95's were outselling the iPhone considerably, even as there is hardly any advertising in the US (1), none of the carriers sell it and the price is significantly higher. And that's just one model.
(*) A non-geek friend told me she thought Nokia was bankrupt, because she hadn't heard anything about them for a while.
I only know one person who owns a Nokia smartphone (and at least eight who have iPhones). He bought it last summer (when the cheapest iPhone was $499) for $200.
Since he wanted cheap email on the go, the iPhone was too expensive for him. I have read a lot of articles about the fact that the iPhone now includes GPS is a game-changer, but I think that the price cut to $199 is more important.
