...more fluid-feeling. I realise that's not an exact science by any means, but it's what you'll generally hear if you give an iPhone and a <resistive touchscreen phone here> to Doe on the street. These are being sold to your average user. Being able to manipulate what's on screen smoothly without any physical/cognitive effort or a stylus is what makes capacitive screens "better".
I don't know what this means, and have yet to experience it. The only difference I've noticed between a capacitive iPhone and a resistive N900 is that my touches frequently don't register at all on the iPhone.