I have an earlier bit of hardware that runs Android 1.5 right now. I've seen and played with the new 2.0 version, but it's not a huge change really. While I like the interface quite a bit, the underlying bits are not that hot. The development environment is VERY limited, it doesn't lend itself to multitasking, and communication between running programs is almost non-existent.
Hardware wise, Motorola's Droid looks nice, but it's CDMA, which is great in the US, but useless just about anywhere else. And the fact that you have to use Verizon in my area is a complete turn-off. They nickle and dime you for everything, even when you get their over-priced mega plans.
Personally, I'm waiting for the arrival of my
N900. It's GSM/3G, works on any GSM network, including those inside and outside the US, and has twice the storage of the Droid nativity. It also runs a Linux distro, with a freely downloadable SDK, where most of the stuff (including all of the GUI elements) are completely open-source. And since I' have GSM, I can just pull the sim out of my current phone, drop it in the new one, and keep right on using my existing plan/provider. No re-up, no contract, no up-sell, just what I already have with more power.