For anyone who wants an unbiased, fair comparison of the N1 and iPhone 3GS...
YouTube - Google Nexus One Vs. iPhone 3GS
I have to admit, the iPhone really impresses me. I had an iPhone 3G for a month and it was the best phone I've ever had. I just couldn't get an interest in AT&T so I returned it. It's hard to believe they've been rated the worst carrier of 2009.
However, after doing a lot of research about the N1, I like it better than the iPhone. Just about everything about the N1 seems like an update from the iPhone 3GS. It's faster, has more RAM, and has better hardware. I could go on and on...
I currently have an iPod Touch which works great for web browsing, music, and YouTube. As cool as the App Store is, I've only downloaded one app (Pandora). Most of the apps seem useless or crappy.
Concerning sales, the main reason I think the iPhone will continue to excel in sales is because of Apple's marketing and it's ease of use. I've seen preteens and even senior citizens with iPhones. I'm not sure if I'd see any of those age groups with Android devices. Also, just because the iPhone sells better than the N1 or Droid doesn't make it a better device. In fact, they are better devices IMO...Well...at least the N1...