With all the resources and talent that Google have, you'd think they'd come up with a UI that didn't look like a poor iPhone rip-off. Even the clock widget shown in the demo looked like an exact copy of the one that's been in Mac OS X since 10.0

Actually, the video demonstration I saw looked pretty impressive. I wouldn't argue that it's better than the iPhone, but it's much closer than anything else out there. Considering it's a platform that is fully open for development, it does have some advantages to the iPhone. In short, I expect more competition to come from the Android platform than from anything coming from Microsoft.