I'm very happy with my Android G1/Rogers Dream phone, after 7 weeks of use.
It has the hardware Querty keyboard and lots of apps, mostly free. It isn't
unlocked but can be and I've bought a little unlocking card to use when I
travel abroad in a few months. Unfortunately I can't verify that it works
(except with the original Rogers SIM) as I don't have access to any other
SIM cards but I expect it will work.

Several reasonably good music and podcast apps and readers are available as
well as enough "fart apps" to satisfy any tastes. It plays movies fine, but
only in the H264 format. Speed is good and now that I've bought an extended
2400 mAh battery it goes more than a day of fairly intensive use. If I only
used the phone as a phone the original battery would have lasted all day and
more, but I love to tinker!

It's very customizable and hackable, but works fine right out of the box.
The only mod I did was enabling the soft keyboard - easy and safe.