Google's Sergei Brin and Steve Horowitz show off multiple prototypes of the Android platform, one of which has a Palm smartphone form factor and one that has a higher-end, HTC Windows Mobile form factor. The former shows off text messaging and Google maps (which looks pretty great, btw), and the latter shows off 3G desktop-quality web browsing using webkit. There's also 3D OpenGL rendering, application feature sharing, and iPhone-esque finger gesturing. If you weren't excited about Android yet, just think about how this could turn out to be the open-source iPhone. [YouTube]
@RoCKSTaH226: I wouldn't bet any money on Apple adopting Android for the iPhone, but I agree that people are jumping the gun assuming that Apple is threatened by this. Android is not a direct iPhone competitor (iPhone is a phone, not an OS) and we have yet to see an iTunes equivalent. The company that should feel threatened is Microsoft as they are a direct competitor in the mobile OS market.