I used to a be a big fan of Nokia phones but lately each device they have been releasing has only been marginally better than a previous device. Whilst you can't have a perfect device it seems that each one released, even the top end devices, lack something (e.g. battery too small, no xenon flash, smaller screen, etc).
The N86 that was launched today has an 8MP camera and some other new features such as scratch resistant screen, wider angle lense and the capability of taking panoramic shots but it has a small battery and doesn't have a xenon flash that was present on the N82.
I'm not sure why Nokia are so late with bringing out a phone with an 8MP camera. Sony are pulling ahead with a 12MP phone and Texas Instruments has announced a new mobile platform that can support up to 20MP.
Of course, megapixels aren't everything and it has yet to be seen how the improved optics on the N86 will perform.
And something that Nokia really needs to move away from is the clunky S60 interface. It's a full featured platform but it's tired and each Feature Pack released doesn't improve the overall interface.
My contract runs out in July and I'm starting to sway towards the iPhone. It's so much easier to use than most Nokia phones and I think I could put up with the limitations.