First shots of the proto hardware Google is using for the Android project are available at Gizmodo, and it looks remarkably like a Nokia E61 (or a Blackjack or Blackberry, depending where your loyalties lie). Given this will probably not be the final hardware, a functional design, with qwerty keyboard, was to be expected.
From Gizmodo...
It looks HTC-ish in build, similar to the grainy versions we've seen in the official videos and the renderings in the SDK emulator. Our source, a Giz reader, had some feedback to add to the
prototype, which he used for a day: Even in early form, it's light and
fast, much faster than the desktop emulator at times.