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@GA2G
All for very different reasons, but here are my choices in that price bracket. I've only selected phones that do different things better than the iPhone3GS.
Nokia N9 - fantastic phone, but not many apps, and limited support/growth
Motorola Atrix (w/laptop dock) - this already has the Android Gingerbread OS, and ICS update is forthcoming (I've checked)
Sony Ericsson Xperia Play - if gaming is your thing, then this is a bargain (older specs though)
Samsung Galaxy S II - not new, this is secondhand/pre-owned, but good value at the price