You've completely missed the point behind what attracts people to the iphone. I was queing for the iphone on the day after launch day, and there ere all sorts of people in the queue. We had 20 something year old men, who like me, were best described as geeks, however, there are were also a wider range of 20 somethings as well, we had the sort of guy that loves himself, is a bit of a player, and is quite stylish. As well as that we had 30/40 something year old women, a 30 something year old business man who was phoning his client to cancel their meeting because he was taking longer in the iphone queue than he expected !
There are all walks of life, and the reason why normal people get the iphone is that they are attracted by its simplicity. In exactly the same way your mum is scared of crawling under the desk and messing about with cables (in case she "blows up" the average person on the street is scared by your average smartphone with all its bells and whistles and widgets etc.. They like itunes because it gives them one single program to get content onto their phones. You only have to listen to chris moyles on radio 1 harking on about how simple to use itunes is to realise it appeals to normal people ( who probably dont even know this forum exists) on a level the other phones cant match.
They dont care that the iphone cant be used to bluetooth music to their friends, because they probably dont have a clue what bluetooth is anyway. They dont care that the phone doesnt have an app that turns it into a wireless acess point because they wouldnt know what to do with it if they had it. Thats why, despite being less "functional" than other phones they still sell. Because the people who buy them dont know or wouldnt use the features that other phones have.
People perceive the marking and the hype as the sole reason iphones sell and its just so not. People know what they're buying, and yes the advertising brings in awareness, but its the quality of the UI, the ease of use, and the excellent hardware design that attracts people.
There are a hardcore of apple fans, who are big style geeks, and fully understand all the tech etc.. but go into an apple store and look at who'se buying these things and you'll see that represents a tiny minority of the average apple userbase. Its mostly average people, with normal jobs on the highsteet etc.. who just want a phone thats easy to use, stylish, and the fact its seen as very popular and a bit of an icon is probably a bonus for them. But its not the only reason. Your mum likes the fact its got a single app store, with 500,000 + apps in it, they like the fact you can download music, videos, films, podcasts, photos, ringtimes etc.. from itunes and just click sync and it all happens for them.
Its the apple ethos towards computing - you dont need to know whats going on under the hood and just trust the technology to get on with it. the other phones give that extra level of control - like the ability to rootkit it, install froyo on it etc.. but those sort of users are part of the same techie group minority that apple has. The reason apple phones sell so well is they appeal to more than that sort of usergroup. The HTC phones dont tend to.