A few more detailed observations:

+ Hardware h263/h264 acceleration (86 episodes of sitcom fits on a
single 35$ 16GB microSD)
+ Voice input just about everywhere, i.e. updating twitter status is
super fast.
+ More homescreens and widgets.
+ Unified accounts (pull data from facebook, gmail...)
+ Turn-by-turn navigation in maps
+ Active noise cancelling (two microphones)
+ Use Google Voice and skype etc. to call free/cheap
+ Build in VPN support

- Home screen does not rotate
- No multi-touch in Google apps (Google needs to flick Apple the
finger)
- Touch keys Seems more responsive at the top than bottom
- Categorization/organization of the app drawer would be nice

Misc:
# Future Google upgrade to kernel 2.6.32 should make 100-150MB of
additional RAM available.
# Google have said it will be possible to install apps on the SD in
the future.
# Flash 10.1 should arrive soon
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