The following is just a rant.
To me, the deal breaker is the lack of a microSD slot. What were they thinking? I can't believe the developers at Google said, "Okay, let's shave $10 off the cost of this phone by getting rid of something no one really needs, such as external memory."
There's no way! The developers are going to want all the bells and whistles. Otherwise, they won't be able to fully test all the features of the operating system and the core software.
Seriously, moving forward with Android 2.4, 2.5, 3.0, etc., are they going to say, "We don't have expansion memory on our development devices, so we can't guarantee that the OS will work with it, even though every other Android phone in existence has it."
That's idiotic. Some bean counter at Google met with some bean counter at Samsung (a company famous for its low quality electronics) and came up with this compromise design that has angered the development community. Those of us writing apps for Android will have to either grit our teeth and buy a Nexus S just to have the official development device, or else dump Google's devices completely and go with the latest and greatest from Moto, LG, HTC, etc.
Or else just stick with the good, old Nexus One which for my money is still a fantastic handheld device. Just my humble opinion!