Hi Ram,
Depends what you are going to use it for. If it's a toy, and you don't mind the high cost of the toy, or it is worth it for you to seem rich, then the toy is probably the way to go. Its high cost does not seem to deter people who want to seem rich/chic as it is extremely popular with people who otherwise would not spend much, but for the oh so important image. But this is not so true. No they simply want it as both a very pretty object, but also they want to belong, to belong to the group of people who have it, to the cool kids. If you don't have that toy (and&ipod &...) you are simply not cool. Buy one, even if it is extremely expensive and flaunt it. Not to flaunt yourself as a rich person, but as someone with a fashion sense, as cool. For this the tool is out of the question. Try taking out a Nokia e71 amongs iphone people, I mean you might as well be wearing a star trek shirt. But I'm assuming you're not too worried about that or you wouldn't even be deliberating but standing in lthe long line of cool people trying to be the first to get the new cool thing. (Nothing says cool more than that.)
There are other reasons to buy the toy cell as it is cute, but I won't go into all the other reasons here.
And then there is the tool. It does a lot more, but mostly it gives you freedom, it is not the fascistic place of the mac/ipod/iphone users. If you are a serious user, and need the phone for more than simply calling, and perhaps browsing the net, as for example you might want to use it as an internet phone when you're abroad with wifi connection instead of paying the huge roaming fees that the iphone demands of you, then you will obviously want to but the tool.
But then, the tool, the Nokia e71, being as nice as it is, does seem to be a tool from the last century. I mean the iphone interface did change the game. There is simply no comparison. (I know neither of the operating systems very well, but played around with the Nokia e61 , the iphone, and some HTC's).
Now at last the tools have caught up and there is no reason to get the toy. You have HTC diamond, and soon the HTC Touch HD that Dupin talked about in this
post . These would seem much better than the iphone. Especially the Touch HD seems great. Then of course you have the new nokia's which are starting to come with a new operating system also. (there is also samsung, xperia etc.) Now that they caught on, there is no more reason for the toy, which is by now technologically quite behind them, (especially as ít has a very short battery which you can't replace which pretty much make it a no show for the pro) except that it's interface is perhaps a tiny bit still ahead of them. By now though it is not enough to warrant a consideration among the many new tools for any reason besides your image.