This is actually breaking news, because sources indicate that the GPhone will not actually be a phone, but rather a software suite package for mobile devices, based on linux.

So the idea of a GPhone device competing directly with the iPhone wont happen right now. Google simply wants other handset makers to use their cell phone software (they dont charge any license fees, it is entirely ad funded).

I'm a bit disappointed they wont build special hardware but hopefully some of the good handset makers will adopt Google's software since it is open.

I dunno if I'd be disappointed by Google not building a real phone. They're not what I imagine when I think "hardware."