Yes, experiences trump possessions, but...

I almost think the iPhone might be an exception to this generality. I saw a t-shirt on Threadless recently that said "My iPhone has totally changed the way I poop." Or, as I often have said, having an iPhone means never having to be bored. Whenever I'm in line, waiting at the Dr. Office, etc... I have something interesting to read at the tips of my fingers, or a game, music, or whatever.

So perhaps the iPhone takes the edge off of what otherwise might be dull/unpleasant experiences to such an extent that its overall impact on happiness is quite high. I, for one, am still hugely attached to my original 2G and feel lost without it.