I guess I don't care as much about how the phone looks and more about the fact that the iPhone 8 is still on latest iOS whereas XZ2 and basically all sony phones will hardly get any updates and you get to choose between keeping your camera or updating your phone and keeping it fast with a custom rom(yes, you keep your phones camera active nowadays even after unlocking, but there is no updated camera HAL on the latest custom rom, you'll always have a subpar camera experience). Sony even announced that the Xperia 1 III will only receive one major update recently. Although everyone is still hoping that that was a mistake but the europeans.
I would say Xiaomi deserves it though. They're cheap devices with good performance(and inofficial GCAM), and usually some (not great) open source drivers that allow for fast custom rom development(although that too has taken a turn for worse recently).
iOS
I have not seen iphone being outclassed by another phone.
And you didn't name any phones that outclass the iPhone.
That's because there are none. I say that as not a particular fan of Apple products or their ecosystem. I only buy Android phones as I prefer that ecosystem and interface. Every generation - for the past ~13 years - I research all the phones on the market, those worth bothering with, and it's still exceptionally clear Apple is making the best smartphones. Ecosystem, performance, audio, video, photos, gaming, all aspects remain at elite levels among smartphones. They're the only smartphone maker that has consistently stayed at or close to the top for so long, generation after generation.
Also had a xiaomi phone as business phone, and it was performing better than the currently available iphone.
I think iphones have stopped looking nice a while ago anyway.
I like the design and finish of Mac laptops, but even there, you can get better from brands with windows os, but that will cost a ridiculous amount of money.
May I ask, apart from look, why do so many people in the US chose to use an iphone? Genuine curiosity.