It makes me laugh when people slag the iphone off ! really ! i mean look at the phones before the iphone they were stone age. Apples first phone (2g) was about 3 years ahead of its time. Its only now that phone are coming close to the iphone and thats 2 and a bit years on and they are all copies of the iphone. Hardware wise there is other phones that beat the iphone but its not all about hardware anymore as they all have good hardware. Its all about software and its user experience. A phone can have all the boxes ticked (GPS , 3g etc) but if its frustrating experience you end up just puting it down. The iphone is sooooo easy to use. As for browsing there is NOTHING that comes close to the iphone end off. That said there is other phones that comes close ish to the iphone 3gs and it is the HTC Hero (G2) which is an Android (Google OS) based phone.
http://www.engadget.com/2009/07/23/htc-hero-review/
The other is a Palm Pre which is not out yet but will be on 02 soon but again it is not as good as the iphone 3gs
At the end of the day the iphone has a APP store with 55,000 apps to pick from