Electronista has a good video of Android running on a reference platform. The video gives a nice feeling for what a touchscreen-focused Android phone would be like. The result’s about what you’d expect: not nearly as smooth an interface as the iPhone, but significantly better than many existing smartphones.
Personally, although I look forward to Android’s release and am extremely interested in what applications its fully open architecture will make possible, I’m inclined to wait for the second-generation devices. For actually getting things done on a phone, I have a strong suspicion that the BlackBerry Pearl and iPhone are going to remain the best two options for most people.