My friend's fiance is one of the lead designers for Android, so she has had the G1 for a couple months now.
My take: Great software, but hardware is very meh...
Feels cheap, like a toy, a bit clunky, too many features, and I owned both BB and Treo's and I can text faster on the touch screen, once I got used to it, when compared to an actual keyboard, but the touchscreen and actual keyboard is nice, but too much stuf on the G1.
I would wait until more hardware options come out....and get an Iphone. ALSO Proprietary headphone jack is ANNOYING, as I use my Iphone for music a lot.