1. Better camera. 2. Flash browsing. 3. ‘People’ application. 4. You can store PDF files. iPhone can't. 5. Better reviews than the 3GS:
The Boy Genuis Report: http://www.boygeniusreport.com/2009/07/24/htc-hero-review/ "Would I take it over the Palm Pre? One hundred percent yes. [...] Though what I’ve found, sadly, is I get more enjoyment out of using my HTC Magic or the T-Mobile myTouch 3G than I do with the Hero. Like I said, HTC’s achievements and innovations aren’t anything to dismiss, they are what to me makes Android usable, but with the current hardware powering the HTC Hero, things become murky and frustrating."
SlashGear http://www.slashgear.com/htc-hero-review-2149880/ " It’s reassuring to know that not only is the Hero a great smartphone but that it’s only likely to get better as HTC continue their tweaks. It’s safe to say that, in the HTC Hero, Android has come of age."
Phandroid http://phandroid.com/2009/07/23/htc-hero-review/ "Is the HTC Hero the best phone in the world? In my opinion Android is the greatest platform in the world and the HTC Hero is the best touchscreen only Android phone in the world… so connect the dots if you can."
6. There is a majority of free applications in the Android Market; as useful as the AppStore's paying apps. 7. Android is a free OS. Free from everything. Hero is free (you wish). 8. Multitasking. 9. Better design. I'm sorry, but the chin is awesome and the teflon back, too. 10. Sense UI; Full customization, socialized UI.
Heroes, help me finish. Thanks. :)