The thing I see with the Android stuff is this.. It's not going to convert iPhone users, there is too much bling and brand loyalty there. Android will do much more than the iPhone simply because it's not going to be tied to one company.
Or one phone, of course.
Again, I'd make a distinction between phone and platform. The G1 will probably do absolutely nothing to iPhone sales, but I think that in the long run, Android might be able to.
Overall, I'm disappointed with the first hardware, but the software would be so absolutely helpful to me I'm very nearly tempted to buy the $400 unlocked phone if/when it comes out. If the hardware were slightly better (mostly the issue of ports), it would be enough to get my money.
I cannot wait until we see the first batch of Android phones...