I highly recommend (as I do to all interested family, friends, and coworkers) that you wait, just a few months, until Apple has launched the new iPhone.
The worst case is that the iPhone 4 will be half the price of what it is today and you waited a bit (assuming no beneficial upgrades; unlikely) and the best case is that you'll get the new phone, with all of its features benefits, for the same price of today's iPhone 4 (much more likely).
I really hope this year is the year iOS also gets a refresh too. Apple has really let it stagnate and let their hardware do the talking. Windows Phone 7, I think, is a much prettier interface. Android has some killer features, like Navigation. Apple has the apps, which I guess is a perpetual motion machine for them, but iOS feels old. I worry that that won't change, as Mac OS has stayed fairly stationary from a UI perspective since 10.3, despite obvious and continually complained about problems, such as Finder.
I think the thing that turns me off is that Apple don't really want to make a communicator or a dumb terminal, they want to make a small computer. That the notification system has been so broken for so long, and the cloud integration has been non-existant, shows that Apple really aren't all that interested in the "phone" aspect. I think that's a real shame.
Android does it right: "What's your Google Account?" taptaptap "Oh hey, great. Here's all your contacts, all your email, all your calendar appointments. Good thing the Internet exists. Have fun."
No no, they've had feature patches on top of the UI they've already got. If you take my original first-gen iPod Touch and compare it to iOS 4, the differences are largely hardware, plus multitasking.
I would like a rethink of the icon grid, of staticness (like how the Calendar app doesn't actually show the correct date) and the like.
The worst case is that the iPhone 4 will be half the price of what it is today and you waited a bit (assuming no beneficial upgrades; unlikely) and the best case is that you'll get the new phone, with all of its features benefits, for the same price of today's iPhone 4 (much more likely).