The better CPU is what makes this a better Android phone. I have used Android on an HTC Magic, where the performance is OK, and I've used it on an Archos 5, where the performance is amazing. Web pages load as fast as they do on a desktop, screen rotation is instantaneous, and so on. It's very nice.
And FWIW, the HTC Magic performance is about the same as the iPhones I've played with... so the "Droid" could definitely be the "iPhone killer". (Because it's as fast, has the same basic functionality, and has persistent apps. It is nice to have "push" Google Talk, and it's also nice to ssh port-forward from your phone, and then run an IRC connection over the forwarded ports. All possible with Android, none possible with the iPhone.)