You can bet they do.
The Hero also has a decent mp3 player and takes micro SD cards so you can choose your internal memory unlike the iphone where youre locked to how much you purchase it for.
The Hero feels very nice mate, its sturdier and teflon coated so you dont get stains and scratches.
The iphone is a thing of beauty aswell but doesnt justify being more than double the price, its apple taking the piss.
Slight problem with the SD card theory, the phone itself is usually crippled with 128 or 256 of internal memory, basically when you load apps it has to load something on to the internal memory. I had windows mobile phones for years, quite liked them, but the SD cards aren't all their cracked up to be. You think you can fill them with apps, and quickly find out the phone is just buggered because of the internal memory limitation
It can multi task though, which I really liked. I also liked the e mail applications, the web browser was dire, and most of the apps were shockingly sh*te, but that can be said for the iPhone apps too
I've never used an android, so can't comment, a friend has one and likes it.
I've used blackberries extensively through work, never liked them and after winmo got push too, never understood why anyone would want one
As for the iPhone pricing, yes they are kind of taking the piss. It's deliberate, and they've never hid it. It's called marketing. All mobile phone companies have a premium handset. Nokia used to have it with the 8800 series phones, they did bugger all aside from look great. The iPhone has stipulations put on it by Apple to stop the networks giving it away for free.
The main issue i had with winmo was that you just can't upgrade the things. You get one on the networks and you're pretty much stuck with teh same operating system until you bin the handset. If you know how to hack these things, sure you can upgrade via the black market, but I've never really understood why I needed to be a PC geek to update my phone. Basically Microsoft release updates, the networks stop you from updating. It's really annoying
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