Apple released IOS 5 for the iPhone today as well as Lion OSX 10.7.2 and iCloud. There are some updates to applications, as well, that take advantage of iCloud functions. To install IOS 5, plug in your iPhone to USB and check for updates in iTunes. To install 10.7.2, select "software updates..." from the apple menu.
there are some android phones that are technically better, but androids can get annoying. A lot of the software doesn't work together properly and it makes the phone lag and drains the battery.
Have had the 4 for 13 months and absolutely love it! Waiting for the 5. Probably won't come out til next August or September.