My first generation iphone has a camera as well. I had to jailbreak it to use it in Canada, so it has a third party video AP as well. That's something my Iphone 3G doesn't have. Other than 3G and processing speed, I can't think of any changes with the iphone. I prefer the original aluminum case over the current black plastic.
As for operating systems, kudos to Microsoft for creating Windows 7, but it took them long enough
The new Hyundai may be as good as a Honda, but it isn't going to have Honda owners changing their buying habits overnight. I'm sure Windows 7 is as good or better than Snow Leopard, but it's only been on the market for 4 months, so you have to understand that the "Apple rhetoric" you are referring to is based on Microsoft's body of work over the past 25 years. I'm not a computer expert by any stretch of the imagination, but I wouldn't dream of expounding the virtues of an aquarium product (pump etc.) that I have only used for a few months.