It is ugly and bulky it has to be said. Funny thing was the bloke I spoke to at t-mobile when I phoned up to get my PAC number was saying it was better looking when he was trying to get me to stay with them. Not a good strategy - esp. as I'd already told him I already bought the iPhone. I know they're reading from a script, but they should realise when they've lost the phone contract and at least try and sell me something else like second phone for a family member or mobile broadband or whatever. Anyway...
The G1 is ugly and bulky because it has a keyboard - same thing with the Pre as far as I can tell from the videos of it. I'm not sure how manufacturers go about desgining new phones, but the thinking seems to mirror the way people talk about them on forums. Someone will buy an iPhone and say something like "I love it, it's perfectly shaped, styled, weighted, the software is simple to use." and then people who don't have one pipe up with comments like: "but it doesn't have a physical keyboard, I *need* a keyboard" or "but you can only run one application at a time" or doesn't have any number of other minor features that ultimately don't matter that much.
So the designers of competing phones see all these things perceived by non-owners of iPhones as problems with the iPhone that will win them customers if they can make a phone that rectifies them. "I mean, surely the iPhone would be better if it had a keyboard? And what about not being able to run more than one app at a time - computers have been doing that for decades - Apple must be idtiots if they can't get that working! " Of course, they all missed the point.
Most people don't need a keyboard most of the time and they certainly don't need a miniturised qwerty keybaord. HTC's many attempts at creating phones with concealed qwerty keyboards have convinced my that there's only one decent way to put a physical keyboard ona mobile phone and that's the way the backberry does it, but that's not attractive because then you have a smaller screen.
When you're designing a smart phone you have to get to pick two from: Large touchscreen, Physical keyboard, Compactness. You can have any two, but not all three.
The reason I'd advise people to get a G1 despite the flaws in the phone hardware, is the operating system. The major benefit of buying an iPhone is the software available for it. No other platform even comes close. But at least Android has picked up some momentum. It's too far behind to ever catch the iPhone, but it's a clear second best at the moment. Blackberry has it's corporate niche and will survive there. Pre has no chance.