I've had a chance to play around with the Magic/G2/Ion (whatever you want to call it) and I'm very impressed. Losing the keyboard gives it a very sleek and slim build, and the touch screen is wonderfully responsive. I'm a mobile messaging guy and I generally hate virtual keyboards, but the Magic has a decent software solution. It needs to be sped up by about 15%, and the predictive software is not quite as good as the iPhone, but it is still very usable.
Also, Android 1.5 adds a bunch of features and polish that the G1 sorely needed. The big things like the virtual keyboard, video recording and YouTube uploader are very cool, but I dig the little things as well. The transitions are smoother and lead to a better overall user experience, and the Web browser has been improved by leaps and bounds. I also really dig the home-screen widgets and can't wait for the developers to go to town with that.
It's a good time if you're an Android fan, as there could be up to 20 handsets running the Linux-based operating system. Leaks also suggest the Google-backed OS will wind up on AT&T and Verizon Wireless as well.