iPhone: all the obvious Apple douchebaggery aside, it has many things to recommend it, but I hate the on-screen keyboard. That's a deal-breaker. I won't use any phone without a physical qwerty keyboard.
G1: I played with one in a store the other day, and the software is very alpha. You constantly have to turn the phone because it only occasionally notices how you are holding it. The web browser zooming is kinda crummy. There was a whole bunch of stuff about it that made me say, "Don't you people do usability testing?" Also apparently you can't sync it with your desktop, you can only sync it with online Google services. And, T-Mobile's network is composed of dixie cups and string. But, the real deal-breaker is that it has no headphone jack! There's this gigantic adapter that plugs into a micro-USB port. EPIC FAIL.
Are there any other sane options out there?