With the release of Google's Galaxy Nexus by Samsung tomorrow on Verizon, I couldn't have pointed it out better myself than Daring Fireball's Mr. John Gruber:

...The 2008 G1 had a hardware keyboard; a hardware up/down/left/right controller for moving the insertion point in text and navigating menus; dedicated hardware buttons for Menu, Home, Search, and Back; and SD card storage expansion. All of these things were held up by some critics as advantages against the iPhone. Today’s Galaxy Nexus has none of these things.

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"A lot of times, people don't know what they want until you show it to them." - Steve Jobs (BusinessWeek / 25 May 1998)