"Modern" is such an evolving definition. Most of the smartphones were pretty modern when first introduced. But to suggest that the iPhone is the first smartphone strikes me as an extemely limited definition of smartphone for failure to recognize or otherwise give any credit to palm, blackberry, and windows mobile as smartphones. That strikes me as a comment that only an extreme iFan would make.
Way off topic in some ways but perhaps the following is worth noting.
() It's certainly true that the iPhone was not the first "smartphone." (As noted above.) I had both a Palm Treo and a Windows mobile phone and they both preceded the first iPhone. The best title for the iPhone, I suspect, is the first "consumer smartphone." It introduced the smartphone to millions of non-business users.
() The iPhone is by far the best selling product line of smartphones. By the same token, Android is by far the best selling operating system for smartphones. Depending upon the point one is trying to make, either of these facts may be relevant.
() In terms of current flagship model to model comparisons, the most reasonable is the iPhone 4S to the Galaxy Nexus or the Droid Razr. Depending on one's requirements and priorities, any of the three can be cited as the "best" phone.
* The iPhone probably has the "best" quality display but both the Nexus and Razr have excellent (and larger displays.)
* The iPhone has more apps than any other device but it's very difficult to find an important app that is not available in the Android marketplace.
* In terms of important native features such as notifications and GPS functionality, Android devices remain ahead of the iPhone. SIRI, on the other hand, is an iPhone exclusive.
* Tales of viruses and malware in the Android world are mostly hype fueled by vendors seeking to sell anti-virus software. But there is no question that the locked down OS of the iPhone is less vulnerable to such problems.
* For those who want to customize the user experience Android devices are far superior to the iPhone. That is true whether one compares stock devices or rooted/jailbroken devices.
* If one wants to take advantage of the much faster internet performance of 4G, there is no choice. The iPhone 4S is 3G now and forever.
Apart from a flagship to flagship comparison, the range of Android devices available for a large set of carriers means that customer need not spend $200-$300 on a phone that provides essential "smartphone functionality." In some people's eyes this makes those choices "POS's." From another perspective, it means that a user who wants specific features (such as a physical keyboard) can find a phone that meets their needs without breaking the bank.
To bring this back "on topic," that last point is the most relevant as an analogy.