Next-generation iPhones likely to focus on internal improvements.
Google Nexus One Phone Not an iPhone Killer?
Now, of course everyone seems to have one question about the device -- is this the be-all-end-all Android phone / iPhone eviscerator? In two words: not really.
Throughout the phone there are also new animations and flourishes which make Android 2.1 feel way more polished than previous iterations (including the Droid's 2.0.1), though it's still got a ways to go to matching something like the iPhone or even Pre in terms of fit and finish.