The Google Nexus Phone - Kind of announced
Google addressed rumors today and unofficially announced the internal release and usage of a true Google phone. See the Google Mobile Labs blog entry about it here: http://googlemobile.blogspot.com/2009/12/android-dogfood-diet-for-holidays.html
Although no further details are given, leaks continue all over the Internet detailing the presumed hardware specifications and other details. For instance, rumors insist that the device, possibly to be called the Google Nexus, will be produced by HTC and sold by Google. It will presumably be sold unlocked and free of any carrier commitments. With this, I assume Google will feel free to go in whatever direction it wants to without having to satisfy any particular carrier's demands (unlike the iPhone).
Also, it is suspected to consist of a Qualcomm Snapdragon chip (which by the way also runs Java SE Embedded -- see http://www.sun.com/aboutsun/pr/2009-06/sunflash.20090604.1.xml), a large OLED display, microphone, large camera, and a Blackberry-like scroll wheel. It will of course run Android, but is rumored to be GSM-capable only, with support for TMobile 3G and AT&T EDGE (see http://twitter.com/gruber/status/6612197729 for that rumor). Also, to see a photo of the device -- said to be slimmer and lighter than an iPhone with a larger display -- can be found here: http://twitpic.com/tbdig