WSJ has to say:
The Nexus One finally has the right combination of hardware and software to give Android a champion that might attract more people away from their iconic iPhones and BlackBerrys. It has a larger screen than Apple's phone, and is a bit thinner, narrower and lighter—if a tad longer. And it boasts a better camera and longer talk time between battery charges.
Also, because it will be available on the large, well-regarded Verizon 3G network, the Nexus One could tempt American iPhone users, tired of problems with AT&T, to switch.
The iPhone still retains some strong advantages. It boasts well over 100,000 third-party apps—around 125,000 by some unofficial estimates—versus around 18,000 for the Android platform. And it has vastly more memory for storing apps, so you can keep many more of them on your phone at any one time. On the Nexus One, only 190 megabytes of its total 4.5 gigabytes of memory is allowed for storing apps. On the $199 iPhone, nearly all of the 16 gigabytes of memory can be used for apps.
For instance, Google claims just 6.5 hours of Wi-Fi Web use per charge, versus nine for the iPhone, and 20 for music playback versus 30. Google claims this is because, unlike Apple, it allows the simultaneous use of third-party apps, which can drain the battery faster.
In addition, the Nexus One, and other Android devices, still pale beside the iPhone for playing music, video and games. The apps available for these functions aren't nearly as sophisticated as on the Apple devices.
Finally, the iPhone is still a better apps platform. Not only are there more apps, but, in my experience, iPhone apps are generally more polished and come in more varieties.
But, with its fresh phone and bold business model, Google is taking Android to a new level, and that should ramp up the competition in the super-smartphone space.