GigaOm has a scoop today on what we can expect from the Google phone when it hits shelves:

The phone is said to be mobile Linux based with JAVA apps as well as multimedia file support. There will also be a JAVA user interface.and the phone is supposed to be similar to the T-Mobile Dash. HTC is supposedly making the first prototype gPhone and three to five subsequent versions of the handset. The browser is either entirely Java or based on Webkit, like Safari in the iPhone.

For more:
- read the rest of the facts at GigaOm