I agree completely. I similarly love my Ipod touch (although I wish I had generation 2 with the speaker and external volume control). Before that I used a blackberry curve to connect to my WiFi, (and before that a Nokia series 40).

From google's announcement on their Android blog today

"
Second, many of you have asked if developer devices will be available. We've worked with our partners to create a program for developers to purchase devices that enable them to test and debug applications more easily.
"

You can buy what seems to be basically be the same phone as the G1 unlocked straight from google for $400, and they specifically state you can install your own firmware.

It's $25 to distribute through the Android Marketplace

Not anymore!

http://android-developers.blogspot.com/2008/12/new-resources-for-developers.html

"
Second, many of you have asked if developer devices will be available. We've worked with our partners to create a program for developers to purchase devices that enable them to test and debug applications more easily.
"

Out of the box you got something that looks like the G1, but is not locked to any carrier.

Better yet, after you get yourself a $400 unlocked Android phone, you can get Android source, and put your own version on your device. Perhaps you will give yourself root access. Perhaps you'll figure out the right way to run native code on the device...