It does have a internal GPS. I have decided to buy another Blackberry for now because I really like geonavigator. In two years when I'm due for my next phone upgrade maybe there will be a version of GV for android phones.
So the unit does have an internal GPS unit? I haven't been able to find any good info on that, it is the key feature I'm interested in.
The Apple i-Phone didn't really impress me much, but this G1 has gotten my attention since it is going to support open source apps, which I'm hoping will be free. If the price is reasonable I could see myself getting one of these, unlike the i-Phone which I see as a money pit. All the other cool features appear awesome, but if it doesn't have an actual traditional GPS receiver under the hood it would discourage me from considering it further. I don't talk on the phone much, so the other functions would be more important to me, but if I'm going to have it as a phone it better get service as good as or better than my current pay-as-you-go cell.