Plenty of people do know about it, at least in the smartphone market. They just aren't buying it.
Quote:
Awareness of the Google Nexus One phone itself following launch was found to be 91% amongst iPhone users, 75% amongst Blackberry users, and 73% amongst users of other smartphones.

To me, it launched too soon after the Droid. People considering Android probably jumped on it when it came out, and some probably even switched to Verizon to do so. Then 2 months later, Google announces the Nexus One. People who wanted the best in class Android phone already locked themselves into a new contract.

In time releasing it for all 4 carriers will help, but I'm not sure it will help much. I think the best thing Google can do right now is start drawing up plans to try and pull in iPhone users this summer, when the people who came in on the 3G release will start having contracts free up. Touting the fact that you could pull your SIM out of the iPhone and put it into a Nexus One would help.

As far as the ad power of google.com, It's pretty up there. I bet most of the Chrome marketshare came from Google ads about it.