I saw on Digg today that Google discontinued sales of their Nexus One phone, following "disappointing sales."
What it really means from what I've read is that Google is just not selling the phone themselves directly but it can still be obtained via other means (developers can still buy them and they're still being sold in other countries), but that Google still intends to support the phone for the foreseeable future -- it will still be the first in line to get Android updates, for example.
I have a Nexus One and I like it and this news is a bit worrisome to me, but not in the way you might expect. Rather, because the Nexus One is one of the few Android phones that is truly open.
Apparently, the very first Android phone (the G1), the first Droid, and the Nexus One are pretty much the only Android phones that ship with the stock, vanilla, Android firmware. All the other HTC phones out there for example run the "HTC Sense" UI on top of Android, and the Motorola phones run the "Motoblur" UI; some people don't like these add-ons on top of Android and would rather run Android the way Google intended, using the stock vanilla release of the ROM. Or, some people just like to hack their phones and have root access on them.
The Nexus One phone made it really easy to unlock your bootloader and install custom/unsigned Android ROMs onto the phone if you wanted to (it would even provide a nice screen warning you that you're about to void your warranty). The Nexus One allows you to install whatever you want on it, and both Google and the phone itself fully supports this. But, other phones, notably the Motorola phones that come with an eFuse that will practically "brick" your phone if you try to modify its firmware, aren't so open.
There seems to be a trend in Android phones in which companies are trying to play Apple; Apple's iPhone devices are super locked down, and Apple tries to patch all the security holes to stop people from jailbreaking their devices - with each firmware release Apple tries to make it harder and harder to hack the iPhones. In Apple's ideal world, their hardware would be completely 100% impenetrable from hackers and nobody could modify their devices. It seems Android vendors want to copy this business model, which I for one do not like.
It seems Android vendors are "standing on the shoulders of giants," they look at Android and all they see is a free open source Linux-based mobile operating system, and they wanna just take all that hard work, add a few things to make their devices a major pain in the ass to hack (in their ideal world, absolutely impossible to hack) and then jerk their customers around in exactly the same way that Apple does. Is this really what Android was supposed to be all about? Just giving greedy megacorporations the cheap tools they need to strongarm part of the cell phone monopoly in their favor?
Hopefully the Nexus One won't be the last developer phone that can be bought by non-developers. I got mine specifically because it ran the stock unmodified Android firmware and because it was completely open to customization. As I ranted about before, I don't like how Apple is able to just slow down your old phones and force you to upgrade; at least I have the comfort of knowing I can easily flash any Android ROM onto my Nexus One and nobody can force me to upgrade by slowing my phone down or doing anything else malicious to it.
God help us if this is the future and we're stuck with many Apple-like companies all forcing us to use their locked-down devices that we're not allowed to touch at all for fear of permanently bricking our devices.