If you want iphone, I suggest waiting a few months for the iphone 5. The 3gs is 2 generations behind now, and the hardware is outdated/may not be supported much longer for updates. If you don't mind that, I have seen the 3gs as low as $25. They're blowing out inventory to make room for the new ones.
That being said, I personally prefer the non Apple devices. The open source ANDROID operating system is the competition, and is wildly popular. In less than 2 years, it has overtaken Apple and all other smartphone operating systems to assume the #1 slot. The google product integration is fantastic, and you'll find that most of the APPS are free. These can also do FLASH on websites, which is a big benefit over the apple platform. It is sold by every manufacturer and carrier, and they're all in healthy competition to outdo each other on features, price, and hardware improvements.
The "hot" Verizon phones of this summer and fall will be the iPhone 5, the HTC Thunderbolt, the Motorola Bionic, Droid Charge, Samsung S2, LG revolution, and a few others. (note Apple hasn't said if theirs will support LTE or not yet, but i'm assuming so and including it in this list)
These are the phones that will run on Verizon's new (very fast) LTE (4G) service. (They will also use 3g) The new LTE technology offers data speeds multiple times faster than current offerings, clearer voice, simultaneous voice/data, and greater range. Many carriers in USA are in the process of switching to this technology (AT&T, Verizon, US Cellular, MetroPCS, etc) It is expected to replace GSM eventually, as a worldwide standard. Japan is switching in 3 years, etc
There are two interesting threads on this forum that share some of the apps people love. One for Apple and one for Android.
Once you try a smartphone, no matter which operating system you choose (Google's Android OS, Apple IOS, Blackberry, etc), you'll wonder why you waited so long to do so. The apps give it incredible functionality.
Be prepared to pay a lot for service, though. Most smartphones cost an extra $25-$30 per month, from standard phones. (for the data package)
Happy shopping!
Mike