I also agree that the camera isn't very good compared to previous phones I have had, but I read lots of reviews and did my research before choosing the G1 as my upgrade. Now I've done the research, I am very very pleased overall with the stability of the OS and also the look of the G1 itself.
With any mobile phone today, every handset has one stand-out feature and is what makes people buy/upgrade it. I'd say the G1 is for people who aren't fussed about getting top quality photos from using a mobile phone and instead would use a good digital camera

.