Apple does better frontend. Google does better backend. It will be interesting to see which makes the difference. The transparent, sync-free integration with Google services is the main reason I prefer my Android phone but if Apple steps it up with Mobile Me and bundles it with the phone they might be able to catch up.

My hunch is that Google will have an easier time staying close enough on the UI front than Apple will catching up on services but we'll see. Lawsuits might make the difference.