once hardware starts lacking again, Google will step in with the Nexus 2. The entire point of the N1 was for them to say "hey this is what we're going to develop for, so at least match it".
The N1 served its purpose. To serve as the ideal phone to give other manufactures a guideline on what to make. It basically set the bar for all these phones that are out now. Now lets get ready got the N2.