I agree with sundrop. What is unpolished about Android 2.0 or higher? (I have no experience with Android 1.5 or 1.6). Uh... nothing. Smooth as a baby's bottom. I can tether via wi-fi or usb. I can see my calendar on the screen while I see FB posts, or see live weather maps, or a scroll of recent satguy posts via executive assistant.
Icons on the screen = icons on the screen. Android adds on-screen apps (widgets), live wallpapers, flash video in web pages, and more. Sling over 3G; Sirius Xm over 3G, all available. Indeed, I streamed Blue Collar Comedy for about 4 hours last Sunday driving from Memphis home, with no hiccups. And I could check email while listening.
I can also pull out the battery in a matter of seconds and swap it with a new one.
I upgraded my ipod touch to iOS4 yesterday to play with it; and yeah, the apps run smooth, but in general, there is much less customizability to the over-all device.
I think in the end it is entirely a matter of preference, but Android is in no-way inferior. I love my ipod classic for music; and the ipod touch I have is a nice device - for video at the gym it works great (I got it before I got the Droid); but I think the music software is better on the classic than the touch (more intuitive). I have played a few games (rock band), but I don't use these devices for gaming.