HTC Desire wins. Best phone I've ever had. Would never buy an iPhone. No desire (no pun intended) to sign up for an iLife.
My advise is to try them both out and see which you like the best, look at the pros and cons of each, look at the app stores of each and what the hardware can do on each.
It you want my opinion, iPhone - I've used both and the iPhone wins hands down.
There is a reason why they're so popular!
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