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@GA2G
I also have a G1. The phone software upgrade, called "Cupcake", is due in April. This will allow Video Recording. I am hoping that the capture resolution is also seen to, as it is possible in that type of major update.
So far, I'm quite pleased with it. It lacks certain features that my Blackberry 9000/Bold, and Samsung Omnia possess. The Windows Mobile 6.1 OS is actually quite good. Though, I was happy enough with the WinMo 5.0. Nothing so far matches Blackberry email ability, and speed of typing on the larger Qwerty keyboards.
I feel its fair to say, that the Google-Andoid G1 (T-Mobile) was sold as an unfinished phone. Each update improves it. That said, the iPhone, in its latest incarnation, is the best of the series. Finally it can cut-and-paste, handle MMS and so on. So it was sold unfinished also, at first.