The marketplace is coming out with really awesome apps. A lot of the popular apps for the iPhone are also available for G1. These apps take advantage of the internet connection, Google maps, GPS and tilting detection, making some really innovative stuff. They are all rather new since the G1 only just came out - but if they are great already, they will be awesome in a year!
I am hoping that the open source nature of Android, in addition to the market place starting out free will foster more free and open source applications.