Hm, well...pre-demo, looks like it'll be cost-competitive with the iPhone.
Quoting the Wall Street Journal, Reuters reports that T-Mobile will be pricing the forthcoming HTC Dream, the first Googlephone, at an iPhone-matching $200. More importantly, the WSJ says that "T-Mobile USA plans to release new data service plans in conjunction with the Google phone that will be 'aggressively priced.'"
This makes it clear that T-Mobile sees the the Android phone as an antidote to AT&T's exclusive on the iPhone. Whether AT&T sees it the same way is another matter. The hope is that competition will bring down the price of AT&T's iPhone plans, but really, if somebody wants an iPhone, they'll buy one. For instance, Creative's Zen MP3 players are great, and much cheaper than iPods, but just how many of them do you see around?
[Read the whole thing on Wired]