Do they (T-Mobile and Google) really think that they will sway a lot of consumers away from the iPhone ($199) by 'saving' them $20? There are simply too many deficiencies with this phone. Even if this Android Phone was on par with the iPhone, feature for feature, it still lacks the iPhone's "cool factor". No one will ever walk up to a teenager and say "Wow...an Android Phone!...where did you get that?!"
*Shrug* This looks like it has a lot more potential to me. I don't really like the iPhone/touch OS after using it full time, and I hate how the platform is closed. Android seems much more like a real computing platform to compete with Palm.
I also like that this has a hardware keyboard. At least long term I'd hope this would do PIM well, and have an office suit that's as useable as Palm OS equivalents.
And, I'll probably actually be able to buy an Android based phone in the next year or two. Who knows when or if an iPhone will ever be available on my carrier.