Neither. The iPhone is overpriced and Sony has bad support for upgrades. I'd probably wait and see what Googorola comes up with, get a nexus or get one of the more powerful Samsung phones.
This is actually what I'm faced with. I'm personally leaning towards an iPhone so I don't have to carry around a phone and my iPod Touch.And then in the near future I'd like to get a tablet, so my games and apps from iTunes wouldn't carry over onto the tablet, another reason to get another Apple product.
I don't know.
Most vendors sell the tablet-specific versions independently, and the iPhone "emulator" is pretty horrible. Besides, Android applications are supposed to scale better, since the GUIs are flow-based, rather than absolutely positioned. And why would you have to carry around an iPod touch anyway?
Disclaimer: I have only used Android 2.3 stock (and cyanogen) and the iPad 2 version of iOS 4.3.3.