The G1 wont be able to compete with iPhone, the only reason it is even considered to be a competitor to the iPhone is because it has Google's new mobile operating system in it. People seem to think that anything Google does will succeed, but more often than not new Google services fail. Google checkout was supposed to compete with Paypal, it failed miserably. Google Video was supposed to compete with Youtube, it failed and Google bought Youtube. In fact other than the Google Search, GMail, and AdSense, few other Google services have made any significant splash in their respective areas. The few that have like FeedBurner and Google Analytics are acquired.The G1, and the Android OS, won't be making any headlines after a few months of hype unless Google comes up with some kind of innovative feature. Or at the very least, an impressive UI design and a creative marketing push.