The phones are more or less identical to develop on.
G1 has crazy small internal memory, G2 has no hardware keyboard, and
there are something like 20 odd devices coming out over the coming
year.
http://phandroid.com/phones/
Pay your money, make your choice.
The lack of a physical keyboard was a problem for me on the Magic
(some of my applications - like Teminal wouldn't work). There are
workarounds, but require some advanced techniques, or downloading
alternative applications.
The lack of a physical keyboard also made flashing a new ROM more
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