That's always been my experience with my Touch, and most reviews I read. While many phones are very good, they still miss out on the simple, easy to use - extremely intuitive - interface of the iPhone/Touch. Some of them are excellent phones, but they still aren't an iPhone, so I will wait.
I really like the video out functionality of the Touch because I use them for video testing all the time to ensure that video lines which are in place are all working properly, and hook up audio lines for basic testing of capability.
I could live without iTunes, but I've got abotu 200 movies in my library and growing, so I am not too perturbed about all of it. iTunes just isn't my favorite application.
The areas where the iPhone fails seem to revolve around things which other smart phones have put in like multi-app processes, or tethering. I think Internet tethering to a laptop (Blackberry) is completely amazing for those rare times I have needed it.