The Droid has 10000+ apps. Navigation thats supposed to be a step up from standard GPS. twice the screen resolution as the iphone (854x480).It runs googles new Android 2.0 OS. Has a slide out keyboard, yet is only .06 inches thicker than the iphone, the screen is also larger. Has a 5mp camera with dual LED flash, can upload straight to youtube. Can run more than one application at a time (switch between 6 simultaneously). Customizable home screen with widgets and apps
Sounds like a rival to the iphone to me. The hardest problem for anyone trying to compete with the iphone is whether the phone is better or not, a large market of iphone users will stick to it because its familiarity to the common user.
I'll be getting the Droid when it comes out.