Yes it is true Apple has a year up on Android in cell phone operating system building.  And because they are a marketing giant they have more apps and I suppose to some more importantly more games and silly content.  The interesting thing is Android is and will be more compatible with more outside devices and software.  My Droid opperates very much how I would expect a Linux phone to operate except I don't have a terminal to work with.  Because of that I imagine it is more user friendly than what I would want from a Linux based phone. 

Now as to which is easier to use and functions better that is personal preference.  I hate the iPhone.  I have tried to use it, tried to figure it out and it just seems anti-intuitive to me.  I have a hard time with it.  The Droid just makes sense to me.  I picked it up and knew how to use it.  For me it was what I wanted/expected from a smartphone.  Any issues I have had have been so minor none come to mind and are nothing I wouldn't expect from a phone.  Some people swear by the iPhone and can't stand the Droid they are generally die hard AT&T customers and pop culture lemmings.  It must be the best because everyone has one and look at the schnazy ad campaign.  I respect the iPhone for what it did in opening up the networks to smarter smartphones but it isn't for me. 

Honestly the AT&T network is top of the line.  The fact that there are holes in the 3G coverage isn't an issue because Edge is ok for most uses.  In this big war what Verizon isn't telling everyone is that for what 99% of us use our phones for Edge has fine speed.  What AT&T doesn't tell you is you can only use data and voice at the same time in areas with 3G coverage.  The reality is the advantages to the AT&T network (and there are some they are faster and they do have simultaneous data and voice capabilities) are only in the little blue spots, and the advantages to the Verizon network is they have high speed 3G coverage in more of the country.  There are places where you can only get AT&T and there are places where you can only get Verizon both are quite capable.  Now what no one is telling you is that the majority of the problems people are having with AT&T network are actually iPhone problems.  There is a design flaw that makes the iPhone slower and less reliable.  Now AT&T does have more dropped calls than Verizon and even in my area where there is great coverage there are dead spots where your call will go out every time and you just either need to not be on the phone when you drive through there or be prepared to call back when you get through it.  Verizon doesn't seem to have those here. 

Now my wife says that the best phone she has played with and used is her Blackberry Curve 8530 on Verizon.  Aside from the occasional e-mail outages it is the greatest thing since sliced bread to her.  I personally can't use it for much.  My next phone will probably be something like the Nexus 1 or the next generation or whatever is the best touch phone available in mid-2011. I almost never use the hardware keypad.  So it really comes down to personal preference.  iPhone 3Gs and Droid are pretty comperable.  Best I can tell iPhone 3G and Droid Eris are close I believe.  Though I think the Eris wins hands down in that comparison.