It can use Google Navigator - you just have to download it from the Market.
"Bing phone" only means that it's your default search engine. Nothing prevents you from downloading and using Google apps if that is your preference. The only problem is that, unless you root, it isn't possible to remove Bing as the default or uninstall it.
Okay thanks again. My mother-in-law is considering this phone and the MAIN reason she wants a droid is for the turn by turn directions. I am just trying to make sure she won't have to pay Verizon for the Verizon Navigator.
She likes how I talk to my X ("navigate to ... address") and it Navigates for me.