HTC Nexus One by Google (unlocked)

Pros: Beautiful hi-res, deep color screen.
Fast, fast processor
Active noise reduction really works
Sleek design in the hand
Multitasking
Not tied to iTunes for music
Infinitely customizable home screens
Decent camera w/flash
Built in Google Nav, Latitudes

Cons: No multitouch in native browser (have to d/l Dolphin)
Confused support between Google/HTC/TMobile

Summary: We bought two of these the day they went on sale. Both have performed without a hitch. We've had no problems with the touchscreen or 3G reception, which some have reported.

The screen is gorgeous, and the Nexus really lets you show it off with the animated wallpapers. The processor is very fast; on long webpages my iPhone would "checkerboard" as it tried to keep up with scrolling. On the Nexus, using the same wifi connection, their is NO lag.

The active noise reduction is great. You can make a call from a noisy subway station or basketball game and the caller at the other end doesn't hears almost none of the background noise. This should be standard on every phone.

I'm not sure Google will succeed in breaking the subsidized phone monopolies that some carriers have created for themselves, but I give them credit for trying. In the meantime, though, having support for the sale through Google, support for the phone warranty through HTC, and support for phone service through a third entity creates confusion. That hasn't been a problem for me, since both phones have been perfect, but it's a potential issue.

Overall, there is no other phone that matches the screen, performance or customization of the Nexus all in one package. It makes my iPhone seem rather boring now.