In all fairness, Apple had, essentially, the same restriction at first. It took Apple until version 2 of their own iPhone before they allowed you to use someone else's headphones without an adapter dongle.
The recessed socket is to support the headphone plug so you don't have the issues that tonyc had with his Treo. I guess too many people complained and Apple went with the flush mounted socket this time around. I wonder if they fixed the broken socket issue or just hoped it wouldn't be too bad...
Sorry, that's a pretty weak argument. Are you saying Apple did that to protect us? Then wouldn't all portable music devices have this same weakness, like other iPods?
Don't get me wrong, I agree that this was a stupid hardware design. My last phone was the Sony Ericsson W580i, and I had to buy a 99 cent adapter to use regular headphones with it. Over time (less than four months), the adapter became lose and would cut out every once and a while.
If we're going to have a debate here, though, can we separate the phone and OS? Example: Tony C: the next hardware rev? Do you mean the next Android-based phone? The next hardware rev implies the next version of the G1, and we don't have to wait nearly that long. Hopefully the rumors are true and we'll see some more before the end of the year.
My complaints about the G1:
- no headphone jack AND no A2DP? my Curve has both...
- scrolling on the web is a little clunky when compared to the iPhone browser (as seen in one of the Engadget videos)
- the desktop environment looks a little ugly; one of their videos shows how you can put a picture on your "desktop," and it looks terrible
- T-Mobile? Seriously? Does HTC or Google know how crappy a company they are? They have the worst coverage area of any carrier, and apparently you can't buy the G1 at any T-Mobile store outside of their 3G network (that leaves what, 30 stores?

)
Things I'm excited about:
- the Google environment: even with all my complaints, it's everything I can do to keep from buying the $399 unlocked phone. I don't care what any of the iPhone fanboys have to say, the iPhone (and all other smartphones) CAN NOT interact with Google's services like this phone can. Hell, they can't even interact decently. This phone gives you push GMail and instant Google Calendar and contact syncing. The best my Curve can do is give me unsynchronized push GMail or synchronized every 20 minutes with the GMail app.
- I like the open environment of the apps. From everything I've heard, the iPhone app store approval process is a nightmare, yet crap like I Am Rich still gets through anyway (they still never explained that one)
There are some other things that I think are neat, but the whole Google environment has me sold by its self. I'm extremely excited to see what other phones come out in the future.