I do have a few gripes, though. First is battery life. I expected it would be mediocre, but it's downright terrible. I have to recharge it in the middle of the day. The silver lining here is that the battery is removable so I can carry a spare with me. I really hope they come out with a higher capacity battery soon. Another part that could have been better is the keyboard. The keys are just a little too flat and feel just a bit spongy. It's not a bad keyboard by any means, but I would prefer one more like the Sidekick. Multitouch would be a nice plus too.
It's also worth saying something about the first paragraph of the NYT article. The author says there was no one waiting in line at the store for the G1. That's because we didn't need to. People who preordered the G1 had it delivered. I even had mine delivered a day early. I'm not sure that there would be people lining up otherwise, but it's still a little misleading.
This just pisses me off - it encourages companies like Apple to hype up a product and then slowly sell it in three locations in all of NYC. The news isn't that people want an iPhone, the news is that Apple can be a dick to their customers for publicity and they put up with it.
If it was just a marketing thing, why didn't Yahoo and Microsoft roll out their increased storage all at once? No, those two increased their storage gradually because it's the only practical way. By limiting invites, Google got to increase storage in a similar, gradual way.
With Apple, many stores were at fire-code capacity when the iPhone came out. Apple didn't sell out of iPhones at most locations. The lines were due to the fact that Apple can only have so many people in a store at any given time because we can't have two different pieces of matter occupying the same space at the same time. So, trash Apple if you want, but the lines were real. More people wanted to get a peak at the iPhone than the stores had capacity to fit people in.
I think the iPhone is a defective device and want an Android phone when my carrier gets one, but one needs to be objective: the iPhone generated buzz that the G1 isn't. There are many factors including the relative size of T-Mobile and AT&T and the fact that the original iPhone allowed AT&T users to buy new wherever they were in their contract while the G1 mandates in-contract users have to pay an additional $220. The fact remains, the iPhone generated buzz that the G1 hasn't. The lines were real. People were excited.
There are plenty of reasons why there isn't much hype around the G1 and you've pointed a couple of them out. I think it's also obvious that Android, and particularly the G1, were not marketed nearly as heavily as the iPhone. It also may be that the iPhone has achieved critical mass and people just aren't interested in the knock-offs that are coming out now.
Your statement about in-contract users having to pay an additional $220 is incorrect - at least it was a few weeks ago when I ordered mine. At the time I preordered I believe it was $199 for new customers. I was still in contract and mine came out to about $338 with some BS activation fee and sales tax. I did notice that the G1 is $179 now so that may have changed.
I also don't see what open source would have to do with improving sales of the device. If Android succeeds, it'll have to be because it does something very special that RIM and Microsoft - and especially Apple - haven't done yet.
Considering the reports say that within another quarter Apple might have more iPhones out than there are versions of Windows Mobile everywhere, I'd want something a lot bigger than "This is a good product" to suggest Google has a chance of toppling Apple.
Others have mentioned that iPhone was "first" in this particular market (the market for "Buck Rogers magical computing devices that fit in your pocket"), and that has definite value (the PC was on the market for a couple of years before Macintosh), but I don't think it can beat openness in the long run.
Prior to the Internet, the only thing you could do with a PC was run software written specifically for each platform. The average computer in the late 80s/early 90s cost between $3-5000. It made sense that people would settle on a single standard that let them get the most out of a very large investment.
However, 90% of what people do with smartphones - calls, email, music, web browsing - is inevitably provided with the phone. 3rd-party apps are a nice addition, but hardly necessary. The iPhone and Blackberry got along just fine without them for years, whereas Palm and WiMo are floundering despite having allowed 3rd-party apps for the last decade.
It'll be interesting to see how cost, and other ancillary features (like GPS, to name just one) will effect buyers decisions. Fashion (as in, "who makes the prettiest accessory for my wardrobe?") may, in fact, rule the day...in which case, Apple still has the upper hand, and, if PC history is any indicator, they will hang on to the upper hand for years to come. Even today, it's pretty much impossible to buy a PC that looks as nice as an Apple (Dell has made a few effective moves in the area, and HP and Sony also seem interested in good design). Then again, PCs still outsell Macs many times over, both in lappies and desktops.
So, maybe you're right, and the market will shake out dramatically differently than the PC market. But, I'd sure hate to bet against history repeating itself given the wide array of similarities (many of the players are even the same, and they do appear to have the same playbooks).