@TitaniumConsulting
Flop? Not likely unless it does something dastardly like lose everyone's data like Micrososft's Danger did. I can't fault them for the pricing. The conversation with their phone partners probably went something like: "OK, guys, you don't want to sell this phone so we'll sell it. Where can we price it so you don't throw a fit?" The phones are up for sale on ebay and amazon priced at $700-$1000 and selling briskly to international customers who can't buy it at the Google phone store.
Google will sell an Android slate device too, priced the same way and for the same reasons. The top 5 OEMs have had them designed for a year and won't ship because of their existing partner relationships - it won't run Windows and it doesn't have an Intel processor. They'll hold up prototypes, and then come back later and say aw, shucks, we couldn't get it to work.
I think it's deliciously ironic that the efforts to prevent adoption of this technology are going to push Google unwillingly into being a consumer electronics giant they had no intention of being and make them untold billions in profits.
http://www.pcworld.com/article/170726/
http://www.androidacademy.com/3-forums/9-handsets-a-devices/247-dells-streak-mid-video