@Asim, I was having V4.1 on my IPhone, and Jailbreaking was very simple..Just type jailbreakme.com in your phone browser, and it would do the rest. Once Cydia is installed, then install "Installous", after that you get all applications you could possibly want.
I dont know if any Jailbreak is out for 4.2, so I am in no hurry to upgrade with Itunes, even though it keeps pstering me to do it.
As a matter of fact I have stopped using ITunes, I use Xillisoft IPhone transfer and also Disk aid.
These can only work on Jailbroken sets, but lets you have complete control of your mobile.
I personally feel Android HTC Desire is better as you can change it the way you like, by using Custom ROMs. This only after you have Rooted it(Equivalent to Jailbreak in Iphone).
But for now if you have a Jailbroken IPhone and A Rooted Android, then IPhone is still the winner, as it has Better Pixels(IPhone4 has Retina display, where images are crystal clear and you cannot see any pixels in it) It has front facing Camera to let you make Video calls on Skype and its own application the"Face it".
And finally the number of Iphone applications are just unrivalled, even though Android is cathing up fast.
The downside of IPhone,
It is not easy to customise it.
It does not have a Radio
It has reception problem
It is all glass and can easily break.
So guys lets try to make Android better, I think Apple has had its fun..