There was a long history of rivalry between iphone and other smartphone (excluding blackberry because they are different league).
Nokia tried to beat apple with their long awaited N97, which turn to be a fail, and their resistive N900 is pretty much the same story.
And look at another giant, Samsung, they too were promising with Omnia HD being capacitive, record HD video and all that..
But they also failed.

All this give boost confidence to apple fanatics to be so proud of their fancy iphone, and thought it was perfect, superior, and nothing else comes close.

That story was starting to change last year when android OS being well implemented by few phones, starting with G1 and all the way to Hero and Droid aka Milestone.
We know that HTC Hero won gadget of the year by T3 magazine, and also stuff magazine give prestigious award to Hero.

Android has done something that other fails in battle with apple. If you want to beat your rival you must start from what the opponent capable of, and you should at least be the same or exceeding it.
in this case.. multitouch, and capacitive the say the least.
We all know that these are just gimmick, but when you argue with apple fanatics, doesn’t matter your phone is capable of (for intance N900 with Maemo, multitasking, etc), you still being regarded as inferior simply because you can’t perform gimmicks. I know it’s not fair, because they would not play by both standard. Anyway..

So they want to play gimmick games and apps, let’s do it their way..
All these things are delivered by Android easily and more. Being v2.0 and above you’ll also be capable of BT transfer (one essential thing iphone misses so long), plus 5MP camera with Flash, and 30 fps video, which missing on v1.5.
Not to mention live wallpaper, google voice 3D navigation, amazing UI, google earth, etc.

One apple fanatic said that this nexus one isn’t as revolutionary as iphone back then.. well it is so funny, like you say stealth wasn’t any revoultionary because F-16 already there. Off course there was easier back then on all days to make some revolutionary things!
You won’t get nobel prize if you invent light bulb today, but hundreds years ago it was miracle.. LOL!

As I said earlier, there is some serious delude mentality of iphone fanatics (altough I know not all of them), that after seeing so many fail by giants like nokia and samsung to match theirs, they inevitably think iphone is unbeatable and can’t accept and see the fact that it wasn’t always so.

Hero proofs it, and Nexus one taking much further step to make sure that this is infact, the real case!