Hi :) well, I have somewhat hastily marked Don´t buy either, ´cause I am waiting for iPhone2, which should be da real ace. Also, I do not wish to cough up for iPhone and have it updated on my ass in next few months, as mentioned for example in this random metaquoted post (concerns iPod, but the gist is the same):
http://community.livejournal.com/metaquotes/7061232.html
Yet any time I get a call, I receive it in surreptitious manner for my phone is getting prehistoric.
So I would say Follow Your Heart and go for the cool iPhone1, logic be damned.