Nice design, poor performance/quality
I bought this phone right after it came out because it was the first Android phone available for AT&T (I really didn't want to get an iPhone). Initially I thought it was great (my previous phone was a Blackberry Pearl from work). However, since this was my first Android experience, I didn't have much to compare it to.
I like the keyboard flip out design. I have always been a much bigger fan of physical keyboards than virtual keyboards, and it seems like more and more Android phones are moving to virtual-only handsets. However, that's about the only thing that really stands out. It has poor video quality, a lackluster processor, and measly storage included. Oh, and it's still stuck on Android 1.5 (and based upon the Motorola timeline, no one knows when 2.1 will *actually* be released in the USA). I personally think they are still releasing it in the USA to avoid a class action lawsuit for falsely advertising that it was upgradeable to Android 2.0. This makes me question how the performance will be. The phone has been rooted recently, and the people that have done it have said good things, but I don't think I want to take the risk (I have to use the phone for work).
Personally, I'm looking at something in the Samsung Galaxy S series, such as the Captivate. My wife recently bought one and it's pretty nice. It has a lot nicer screen, it's much faster, and it already has Android 2.1.