I'm not going to make the choice for you, although if I were in your shoes, I'd choose the Pandora in a shrew's heartbeat. Why?
*Open Development
One thing the iCult has failed with is open development. Instead, they have a closed garden approach to making stuff. So, if you would like to be able to play a game, and actually change it, Apple is no help to you.
*Free Stuff
As far as generally free applications, games, etc., you'll get more from the Pandora.
*Longer Shelf Life
With the iStuff, what was here one day is no longer cared about tomorrow. Open source products will always be cared about by a loving few, but when Apple no longer makes a few bucks off something (like the iPhone/Pod Touch) all those 'great apps' you paid for will be useless, since the services they were dependent on will be long since shut down.
*It's Cooler
Because you can emulate a whole load of older consoles on a Pandora (some of it you won't see on iStuff because it could jeopardize their... 'political correctness' with other companies)
And a PSP emulator is underway.
In short, you'll be the golden eagle among the turkeys.