It doesn't lack a multi-touch screen. It's a capacitive screen that does support multi-touch, Google just appears to be playing nicely with Apple and not competing directly on that front, for whatever reason. The hardware supports it, the software doesn't. Even the G1 had multi-touch capability (however, you couldn't cross axes from multiple fingers on it).

I have one and I'm very amazed at how fast it is. I have never extensively used an iPhone, so I can't compare to that. However, it blows the G1 out of the water. Very very snappy.

AMA