Ironically, the G1's KB is better than Droids. N900 appears to have both the same key alignment and lack of top row clearance that Droid has.
Android applications are written in the Java language syntax yes but they don't use the Java platform or run as Java on the phone. Google also makes a toolkit that lets you write javascript applications as Java. That's not "Java" either, that's a Java framework that lets you write javascript/ecmascript.