The operating system is Android Mobile Technology Platform 2.1 (Eclair).The display is 3.7-inch (diagonal) wide-screen WVGA AMOLED touchscreen with resolution 800 x 480 pixels, 100,000:1 typical contrast ratio, 1ms typical response rate.

You can get all specifications here.

The tag line on Google store is: Web meets phone. In my opinion, the decision that Google took to sale directly the phone is strategic. The phone comes with impressive software and will redefine the phone market.