That makes no sense. The iPhone does not have any capacitive button. It has 3 (or 4 depending on the way you count the volume rocker) physical buttons and a capacitive touch screen.
And no, it's not the same.
1. Feedback. This turns out to not be important for most people for most tasks. Still physical feedback (of layout and of action) important tool of physical interaction and required for eyes-free operation. I fully expect this problem to be solved within two years.
2. Software bypass. This is mostly useful in case of complete software lockup (low level/OS crash), but while most phones are built to be "always on" you can't always avoid low-level lock-up. And in that case you need to reset all transient device state. I expect the final fail-safe to remain a physical button, although some kind of watchdog running alongside the OS itself may be able to take care of 99% of the lockups.
[0] I don't consider press and hold, double-tap or similar to be good general-purpose solutions to this
EDIT: I didn't know about the proximity sensors and other mechanisms until the replies below informed me. I still prefer tactile though :)
The issue here is buttons that you physically press down (like the iPhone home button) vs buttons that are an extended part of the touch screen element (the back button on most Androids).
Of course, the downside is that people sometimes buy a product that seems to be "as good as an iPhone," and they have no idea that their user experience is worse than the iPhone's, they just assume the iPhone works just as poorly as theirs.
I currently have to carry two phones, one is an Android device and the other is a Windows Phone 7 device, they both implement the proximity sensor and it works the same way as the iphone.
IIRC correctly HTC (back in the days of Windows Mobile 5) already employed this feature in their "slate" phones before the original iPhone was released. They then improved it by adding some rather unique features, like being able to flip the phone over (i.e. laying screen side up on a table) to silence/reject an incoming call.
Just to counter the "brilliance" part of your statement, there was an issue with the proximity sensor in iPhone 4 that took a couple of months to fix :)
I think this bug matches part of the issues people have with capacitive buttons - those buttons are prone to be active when they shouldn't causing mishits.