I think everyone is missing the point here that Android as devices so far haven't been great. I have a G1 and compared to the iPhone it certainly isn't sexy.
But as a platform, in the next 18 months you'll see an explosion of devices for different handset manufacturers that are all compatible with each other to to some extent - so as a developer you can write once and deploy to a range of devices, most of them phones, but some of them devices like the Zii Egg.
Don't write off Android yet. Weren't people saying the same thing about Apple years ago?