The iPhone sucks pure and simple (for many reasons which I wont bother listing). If you want a media player buy an ipod (or a creative mp3 player) I hate apple but I must admit I do love my 80gb ipod. If you want a touch phone the HTC touch is good (I have the touch dual) but its windows mobile (and hence will crash fairly often). Depends what you really want it for I guess.
Personally I now have a BlackBerry bold and love it to bits. Not as pretty as my touch and form factor wise its massive but it does everything so well (internet, email, applications, all easy to set up and very smooth). I can do all that with my touch as well but its just not as simple (I have always been a fan of pocket PC's so it took a lot to convert me
).
If you look at BlackBerry's avoid the "storm" (9000) the touch screen on it is rubbish.
So yeah for music get am ipod+normal phone, for a gadgety phone with a touch screen and media capabilities get a HTC touch and for internet/email and ease of use get a BlackBerry (also pretty capable as a media player if you get a newer one that supports 8gb cards).
One outsider you might want to check out is the G1 Android phone (Google phone, believe you can only get from t-mo at the moment though). Runs on an OS called android (which is completely open source) works much better then the iPhone and I recon will have a big future ahead of it.
Edit: Agree with the poster above as well the Nokia N95 and N98 is a very good phone indeed. Very capable music player, great solid phone and some nice features. Cant do quite as much with it as you can a windows mobile device or a blackberry (in terms of applications) but if you just want a good phone and media player with a halfway decent camera then this is a good choice (I have yet to see a phone that has a really good camera though to be honest, if you want a good camera you still need to buy a camera
the N95 one aint bad though for having something "on the go").
By the way I develop applications and hardware for mobile phones so I get chance to play with a lot of them (mostly before they are released) and the ones above I would say really are the best you can get right now.