The serious competition goes both ways with Android clearly pulling away from AAPL over the next year in market share.
That, of course, doesn't mean Android will have the best OS.
I presently prefer iOS4, the total package (security, integration, iTunes, The App Store, etc.) and most of the business model the company puts on the road, but I'm not religiously attached to it.
The only AAPL stock I own presently is via ETFs. I like to avoid specific stock risk; I scare easily.