The Droid itself is a very capable device. The hardware is very good. The problems/annoyances that people have are usually with the software. I believe when everyone gets 2.1 they will be very pleasantly surprised. The update makes a big difference.
Android itself is coming along VERY quickly. Its good. Its not great, but it'll get to that status, I believe. Google has a LOT of resources and they really are trying.
Apple makes good products. They really do. I just read they are something like the 5th most valuable company in the US. That being said, I despise Apple. I hate their company. I dont like the way they limit their customers. I don't like the way they force you to use their stuff. I hate iTunes. I don't like their propietary crap. I hate Quicktime. I hate their formats. I don't like being "forced" to use anything. I like being able to picj and choose and put together my own setup, I don't want to be able to only choose through "preapproved" choices.
Android has an open structure. Apple doesn't. This is the main driver. Just like it was for PCs. And, lets face it, Mac's suck.
Yeah yeah, I know... people LOVE their macs. Go play photoshop, while I play Crysis 2. Go play with your iPhone that looks like everyone else's and I'll play with my my customized live wallpaper background Google news widget, stock market info, rss feeds, pandora, calendars, agenda and direct dial custom icons.
I've had multiple people say to me "Thats the nicest phone I've ever seen". You can keep your iPhone. No, really.