I usually don't like to get into the middle of these discussions Android vs Apple - I have Android Windows vs. Mac - I have neither, I have Linux Everyone is going to have their opinions, preferences, and whatnot; and everyone is entitled to those opinions whether they are proven or not. Here's the main thing for me, I don't like being locked into using just ONE application to do a task. With Apple you can ONLY use itunes, ibooks, safari, etc when with android you have several different apps that you can download that have different quality but can do the very same thing. The average consumer isn't going to know how to jailbreak their iphone. Its the adding functionality that I like; the price points are just a bonus. But I will say that the iPhones can be user friendly for someone that isn't tech savvy and doesn't care about less functionality, using other apps for this and that, and only having access to apple products.
I don't think that one is better than the other. The pricing is not really a valid argument because people will always pay what they believe the product is worth. If people thought that the iPhone is too expensive, they would not pay for it. However, you are right that in terms of features, android does beat the iPhone. What I like about the iPhone is that is it simple, clean, and does exactly what I want of it. Nothing more and nothing less.
I am currently using an Android phone and so far, I am really satisfied with its performance, including its speed. I don't really have bad feelings towards iPhones but I don't think they will suit me best as I find them a bit complicated to use. I think it really depends on someone's preference.
I started out with an iPhone, as at the time they were the default smartphone choice. But ever since the control button went on my iPhone I've been with Android. I've come to realize that I have very basic needs anyway and buying an iPhone was simply paying a premium for something I didn't really need.
The gist of it is: If you want your hand held and you prefer no hassles as much as possible, get an iPhone. If you aren't afraid of customizing your phone to the point of potentially bricking it, just because you want it to perform like a weapon forged from the gods, get something else. Still, both can do a lot of stuff pretty well.