The differences between the two, as far as Joe Consumer is concerned, is nil.
Widgets are kind of sledge hammer to the bridge of your nose obvious. Anecdotal tidbit- one the guys I work with has an iPhone 3G right now. My phone was making noises one day and I'd take it out every once in a while to glance at it- he assumed I kept getting texts and asked why I wasn't replying. I told him I was checking the scores on the games- he asked how the hell I could do that in three seconds; I handed him my phone where I have a scrolling scoreboard widget, news widget, stock ticker widget and weather widget all running. They update themselves constantly and all I do to check them all is unlock my phone for a second, glance over them, and lock it(Sports widget is set to chime on updates). With his iPhone to do the same, it would take him several minutes to get the same information. We had this talk a couple weeks ago, he said he was going to check out if the iPhone 4 had widget support, if it didn't he was planning on getting a Droid X.
It does change the user experience in a profound way, it makes it
significantly better for those of us who want a bunch of information available in an instant(I was just giving examples of the widgets I have on my home screen, there are a lot more). To me at this point widgets are absolutely essential in a smartphone. If I really want to take the time to fire up five different apps, or load a browser and check multiple sites, I have PCs around me most of the time. With widgets, it's all available with a simple unlock of my home screen.
There are a whole bunch of widgets like the funky clocks that are just their for visuals/personalization. There are also tons of widgets that are rather functional. The funny thing to me is that Apple popularized widgets on OSX-
http://media.arstechnica.com/images/tiger/dashboard-ripple.jpg
They popularize something with such brilliant potential, have the absolute perfect spot to utilize it(phones make far more sense the desktop machines) and they don't.
http://spritely.files.wordpress.com/2010/01/dashboardwidgets.jpg
iPad has them too. Yes, you can quickly launch an app that has each bit of information that you are looking for, close it out, and then open the next app to get the next bit of information. Mac OSX, iPad and Android users all have an easier way to do it, just not iPhone
