Overall I'm pretty happy with the Motorola Droid hardware. It powerful, well built device. The only rip would be that the slide out physical keyboard takes some getting used to. I never had any issues hitting the keys on my Treo 700 W, but often times I find myself having to hit the "DEL" key on the droid.
I'm very satisfied with the Android 2.0 operating system. In general it works well and seems pretty mature. Many of the default applications that came with the phone are well designed and work well. The navigation in Android 2.0 is really well done.
3rd party applications I really like:
Amazon (scan it and buy it from Amazon)
Astro (file manager for basic copying and moving files around on your device)
Barcode Scanner (scan pc screens for apps to download)
KeypassDroid (Password manager application for Android, Windows, and Linux -great!)
Locale (automatically change GPS, WIFI, Bluetooth settings based on where your at to conserve battery)
PhotoBurst (Nice photo browsing application that makes use of the whole droid screen better than Gallery)
Shazam (listen for music, recognizes it, and presents you with the title, artist and potential to buy it)
SugarSync (Basic file syncronization between Windows and my Android phone -best I could find)
Where (Use GPS to give you location specific information -restaurants and entertainment)
On the software side -I'm still uncertain of the applications environment for Android.I'd suggest improvement in the area of Outlook/Exchange/Gmail integration. They all feel like different pieces of software and there has to be a better way to integrate my information. It's really simple I have contacts, appointments, tasks, and notes (okay work and personal). I'd also throw images in the mix. Why can't I get to those anytime and anywhere? Why don't all my connection points utilize the same information. Now there is a cloud service that could really simplify my life....