We don't have much information on the Google Phone just yet. In fact, it sounds more like a party favor than anything else. However, if and when Google starts selling this thing, prepare for some of the strangest - and coolest - times in mobile we've ever experienced.
What do we know? It's an HTC phone - probably the Passion, a distant cousin to the beautiful HD2 - with large touchscreen. It's GSM unlocked and everyone at Google has one so whatever the super secret specs are, they won't stay super secret for long.
But what if Google starts to sell this thing? This is "a big deal" on the level of Neo learning Kung Fu in The Matrix. This means Google is making hardware.