K, I'll bite.
A few of my friends have one, so I have had plenty of time with it. I own an iPhone 3G.
When I first heard of the phone, who was offering it (T-Mobile) and who was making it (HTC), I instantly dismissed it as a joke. Besides, while T-Mobile may have some of the lowest prices, it has a reputation of spotty service and I wouldn't really consider HTC phones to be of the 'highest quality', let's say.
However, when I first played with it - I was pleasantly surprised.
I've seen videos of Android in action, and read a few about it's details, but I didn't expect the phone to be, honesty, this polished. However, Google still missed some spots.
First off, I think the HTC Dream model that the G1 is based off of is one of their nicest manufactured products to date. In fact, all HTC models of this generation (G1, Touch Pro, Touch Diamond, etc) have shown improvements in build quality and design. I really think they've finally listened to our 5-6 years of complaints.
It's good, relatively speaking. Definitely on par now with current Blackberry (which I believe is also made in China) build quality. I wouldn't say matching the engineering and feel of Apple, however even their products can definitely warp your sense of 'perceived quality' (probably none to speak of, but designed to look like it does
).
That being said, everything seems to function very well hardware wise on the phone. The sliding mechanism for the screen seems well put together and will probably last as long as you slide the screen with the light pressure it really only needs. The buttons are definitely an improvement over last HTC models I've seen, they have a very good tactile response.
You have to remember that phone keyboards are completely subjective. I actually love the G1's keyboard - reminds me of a better engineered version of the Sidekick II keyboard (one of my favorite keyboards).
Points for the display as well. Very vivid and sharp. Websites look very nice on it. Hell, the entire Android OS does. The G1 and iPhone's screen resolutions are the same (480 x 320), however I'd probably give the edge to the iPhone. Movies and graphics do look slightly better.
The iPhone OS completely revolutionized the way users interact with mobile devices. Like the Mac OS before it, Apple took all the powerful features and capabilities of the other cold, lifeless Mobile OS's, and successfully built a capable and aesthetically-pleasing user interface around it - with an extra emphasis on stability and process management.
When Google announced it's Android mobile platform, the iPhone comparisons were inevitable. Both are designed to be used effectively on a touch interface and are both of the 'next-generation' of Mobile OS.
I'd consider Android a capable competitor to the iPhone OS. It's visibly appealing, contains a nice color and icon set, and regardless of what people say, the OS, once learned - is very logically designed.
Their 'App Store' was also not bad either. Doesn't pack the 'polish' of the Apple App Store (read: Apple's is better.) but I was able to find a decent app to learn about and download, so I probably wouldn't care one way or the other.
Basic phone functions of the phone rival the iPhone's completely. I don't think it has visual voicemail, however the menus and buttons are very pleasing to the eye, well laid out and easy to use. Texting is pleasant, emails are also very nicely designed. I didn't really make too many calls with the phone, so I can't comment on call quality and such. The browser is also a worthy competitor to the 'King of mobile browsers', Mobile Safari - however Apple still has the edge.
I must also comment on T-mobile's 3G network. Another surprise. Actually pretty decent. Not super fast, but pretty fast - enough for a website here or an AIM chat there. Service seemed to be spot on, at least in the NYC and LI areas. Either T-mobile finally realized it needed a real data network, or there's just not enough G1's on the network.
However, in the end - I wouldn't trade in my iPhone for the G1. At least not yet. There's no exchange support (that I know of), and Android does freeze and lag more than the iPhone. The screen isn't multi-touch, and a lot of the touch gestures it does have do not work as flawlessly as the iPhone. It does not support A2DP (strike 1), has a ****** headphone amp (read: no volume, strike 2), and does not have a regular 3.5 mm headphone jack (and we have strike 3.). Let's face it. Every other mobile device's media player completely pales compared to the iPhone's 'iPod' function.
So, that's my take. The G1 was an eye-opener and I expect greater things from this platform. I'd recommend the phone to any person who refuses to leave T-mobile, and/or those who think the Blackberry storm doesn't belong anywhere near an iPhone-and-its-competitors competition. However, there is a reason why the iPhone gets this much praise. When even the major players ( ::cough:: Nokia 5800 ::cough:: ) are copying you, along with every Chinese counterfeiter, and adding touch gestures to everything and anything your finger can touch - then you know you've struck a chord.