I agree completely the that N1 is almost a prototype of the device Google wants to have someday. Do you think that maybe the Nexus One is going to be the first generation "Google Phone" and there's another one in the pipeline already?
Think about having a 1.3 or 1.5Ghz processor, the 800x480 screen, LTE/WiMax compatible, a Gig of Ram, 8 to 16GB of ROM, available on all 4 major US carriers... The possibilities are endless for this thing. If they step it up... It could really be the "iPhone Killer" eventually...