What is the number one Twilio differentiation? The price or its APIs?
(That being said: they are priced competitively, do have a great API, can do things may others can't (ie MMS), and have great deliverability across carriers.)
Twilio is perhaps one of the most expensive of all SMS gateways.
Twilio's achilles heel is their value-added approach to pricing what should instead be priced as a commodity, i.e. cost-plus pricing supported by vertical integration and economies of scale.