From a Nexus One owner, I'm disappointed but understand the logic to a degree.
The US market is so messed up and in reality it's a combined screwing from both the manufacturers and the carriers. I am utterly overjoyed with my Nexus. From my standpoint, it blows the iPhone 3GS out of the water and is already dangerously close in comparable specs to the iPhone 4--with no antenna issues. The problem is that the Android market is fragmented from manufacturers putting their glossy finish on the software and the carriers trying to tailor and lock down the "open" OS something they can control and support. I wasn't planning on doling out the cash for an unsubsidized N1 until I sampled what AT&T did to the OS with pathetic Backflip. And from there it was just insult upon injury as the level of draconian control put upon the phones turned them from possible Windows Mobile successors to a pale and dismal shadow of the iPhone. And from what I learned across the board, that this wasn't limited to the 1+ year old hardware found in the Backflip, but to all AT&T Androids. Other carriers were better and worse in other departments. More freedom, but a poor network to less choices and average billing and quality. Frankly, I'm with a good chunk of AT&T geeks, we love the network, because for the majority of markets they're better than the competition. But I despise AT&T for their lack of customer care and the contractual need to attempt to nickle and dime us to death for apps and what they're obligated to provide.
Google had the right idea, and because of that, it pissed off the manufacturers and the carries in trying to do it. HTC was the only real winner in this as they got to make the N1, and subsequently patterned the Desire after it. The rumored thought behind the next OS update is to get all the manufacturers to make phones with the base minimums and be able to get updates directly without having to go through the Google ver to the MFG ver to the carrier approved version. The interaction between the last two is what created the vast fragmentation between v1.5, 1.6, 2.1 and now 2.2. If Google is able to keep everything on the same level field than Android will prosper and outpace Apple.
Sadly if Google decided to push out a Nexus Two or something, then they'll just succeed in pushing Android out of the market as the carriers and manufacturers will just stop using it and go back to what they used to do--which is bad, very very bad.