The Nexus was poorly timed. Everyone who wanted new phones, and wasn't tech oriented. bought a droid. All those people really, really don't want to the Nexus One to succeed. Mostly out of spite.
It is really frustrating as we all know to buy a new piece of tech and see it one up'd that quickly. Also the Droid has a ton of adds and press and the word of mouth is more prevalent. People won't care about the Nexus for at least a month or two.
Or if Verizon picks it up... but they have put too much effort into the droid and probably don't want to see the Nexus get big yet either.
Shitty timing Google... Shitty timing.