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I've had both--for my money, the Axim is light-years better.
The difference in the LCD quality is minimal. Unless you see them side by side, you're unlikely to ever know or care about the difference. One exception--the X51v is brighter.
The directional controls and buttons on the iPaq are just useless. Worse than useless, they tend to disrupt your usage if you brush your finger against the pad.
The Axim is much smaller, sleeker, has the newer OS (which isn't really buggy--some programs just need to be updated), a 3D accelerator/video decoder chip, is cheaper, and gets much better support from Dell than the iPaq does from HP.
From "in your market" I assume that you're not in the United States? If so, you might want to look at a Fujitsu Loox 720. It lacks some of the advantages of the Axim, but it might be a little cheaper depending on where you are.
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