I'm loving Android. My Google Nexus One is easily the best phone I have owned, and I've owned lots. It's fast, it's comfortable to hold and use, the screen is superb, the virtual keyboard is the first non-tactile keyboard I can actually use and use well, and I really appreciate the fact that you can carry a replacement battery (cough cough). In fact, I like it so much that I have been willing to overlook the Bluetooth issues with my car!
I actually have two of these babies, and one of them has a bad secondary mic (the mic used for noise cancellation). So, just had it swapped out, which meant restoring all apps and settings.
The good news is that Google just kind of figured it out. As I set the phone up, and entered my account information, installed apps just auto-downloaded and restored themselves. Nice. But, unfortunately, the restore process only restores apps, and not app data and all settings.
That's a real shame, and one area where iTunes + iPhone has Android beat, swapping out and restoring an iPhone is about as close to perfect as that process can be (with the only major limitation being the need to actually plug-in to the computer with the backup). I've not heard that this is an area planned for improvement in Froyo (Android 2.2), but here's hoping.
But I believe one of the things coming in Froyo is the ability to install apps on the SD card instead of in the phone's internal memory. If that's the case, then you could probably just install your apps on your SD card and simply transfer the card from your old phone to your new phone, thereby retaining all of your app data and settings along with the apps.