In my opinion, Verizon and Motorola are going after a niche market. That niche is the relatively small number of iPhone users who hate AT&T. Or, to be more specific, the relatively small number of users who are going to be willing to trade their beloved iPhone for said perception (be it real or imagined) of a better network on Verizon.
iPhone killer it is not. Just as nothing has dethroned the iPod, except maybe the iPhone.
Walk into a verizon store today to play with one. Did you get to touch it without waiting in a line? My point exactly. when the iPhone first came out, I couldn't even get into the store to touch one on the first day. And the 2nd day was a mad house.
I don't think many people are trying to say that the Droid is better then the iPhone, but it is a good alternative phone for people that wish to use the Verizon network. Verizon having a better network is not just imagined, it is the truth. Verizon offers 3G service to hundreds of smaller cities and towns that AT&T doesn't. AT&T has focused their 3G coverage only on the larger metro areas and eventually people outside of those top market areas want access to new technology as well.