I'm pleased to report that I picked up a Black 32GB iPhone 5 last weekend from a local AT&T store, and it's totally free of scratches & nicks, I see no dust or smudges in the screen or camera lens, and (knock on wood) it is fully functional so far. I did buy AppleCare+ just in case. Interestingly, when I first examined it in the store, I thought it was nicked ... but it turns out there was some dust on it from the packaging.
Coming from the iPhone 4, this new one feels very zippy, and the screen is great. It's funny - the screen doesn't seem larger when I'm using it, but when I look at the iPhone 4 (or a letterboxed app on the iP5) it seems small. As a serious amateur photographer, I am also particularly interested in the camera. I'm glad to see that, while it doesn't rival a DSLR, the quality from the iPhone 5 is a significant step up from the iP4.
Since I was about to commit to another 2 year contract, I did investigate Android and even Windows Phone 8. I almost went for an Android, but for a variety of reasons (won't go into details here as I don't want to start a flame war) I ended up deciding that sticking with iOS was the right choice for me this time around.
The new iPhone 5 is a pleasure to use & I'm glad I went for it.