The way some folks describe it, iSCSI SAN solutions have it all over Fibre Channel. Word is that when enterprises, particularly small to mid-sized ones, stack up one system against the other, the decision usually falls toward iSCSI. Reasons vary, but they generally line up along ease of deployment and server connectivity issues.
But that's just the way some people see it. Like the great Mac vs. Windows debate, we're sure there are partisans on both sides quite prepared to argue the merits of their system while claiming the other guy has rocks in his head.
What can't be denied is that there is a fair amount of activity surrounding iSCSI lately. LeftHand Networks recently added the IBM x3650 server to the list of hardware options for its iSCSI SAN/IQ solution. QLogic's SANblade 4050 HBA now supports VMware's Infrastructure 3, letting you add iSCSI arrays from virtually any vendor throughout a virtual infrastructure.
And even stalwarts like HP are beefing up iSCSI capabilities, most notably with iSCSI connectivity plus SATA and SAS drives on the ProLiant DL585 G2 NAS gateway.