When our contracts end, the G1 will be 2 year old cell tech...not what I'd call an inspiring reason to switch.
Even though the G1 is fugly, its only a 1st gen device and unless apple opens up iphone (not gonna happen), future iterations of Android based smartphones will leave iphone in the dust. IMO, of course.
But that's assuming Apple doesn't continue to develop the iPhone. Who knows what future iterations of the iPhone (software or hardware) will have in store.
I'm not trying to be a fanboy, but Apple does have an 18 month head start, and its not like Apple released the iPhone then quit working on it.
(Well, let's hope they didn't)
The other one looks as though it was designed by Fisher-Price.