No experience with it, but if it was flaking I would collect the flakes to sell on Ebay or Trademe. Fairy dust mixed with ground unicorn horn and other magical ingredients should fetch a good price on the second hand market.
Here is my take - a white iPhone while looks pristine and admittedly more 'desirable' consider the following scenario: You are using your phone in a reasonably dark room/area - you could be watching a movie or replying to a iMessage and the last thing you'd want is an annoying white bezel visible detracting your attention from the screen
If you are okay with that then go for it.
Also, my observations from people on the office floor - women go for the white ones.
This is my 5th iPnone and every one that I owned before was black. So when it came to the new iPhone5, black was it for me: first, because I prefer black phones and second, as khull pointed out when you are watching video etc black is less distracting from the content on the phone.
However, here are the reasons I went for white:
The two-toned back plate on the iPhone 5 means that color choices aren't as simple as "white" and "black". You've got "white & silver" and "black & slate".
The brushed aluminum on the back of the iPhone 5 is darker on the black version and shinier on the white version.
The black version is actually painted, so when it scratches you can see silver coming through. I already seen some of my friends who bough black iPhone5s with the scratch marks, they look horrible.
So when I was weighing up the above two reasons I was still not 100% convinced. Here is what moved me to 5.
Unlike other phones, iPhones hold their value and when it comes the time to upgrade, you can get a decent $$ for your old iPhone, making the upgrade not that expensive. For example I got $625 for my 16GB iPhone 4S, so the new iPhone5 only cost me $400. I had iPhone 4S in pristine condition, except for a tiny bump on the side. In iPhone 4S that side is silver, so the bump is barely noticeable. If this was iPhone5, I would've lost value on it.
And, to top it all off, I discovered that white iPhones commanded higher premium on TradeMe for some reason. An equivalent iPhone 4S 16GB in white sold for $700!
The combination of those reasons kind of sealed the deal for me. White it was.
I've read somewhere - when it comes to the iPhone 5, White is the new Black!