Sorry to be hacking your thread mjumrani! But since we both are on the same boat, maybe this helps you also.
I too was inclined to get the Nexus One but am now sceptical about it. The thing is that I have a N97 which the wife is now eyeing. So she gave me an offer I could not resist. She is going to buy me a new phone (30-35k) and she wants to pocket my N97.
I was initially inclined towards the 3GS but I hate itunes. Agreed that there are other alternatives for syncing and all but still, I don't want to be restricted by Apple software. Also, since I will be getting the locked version, the thought of having to jailbreak everytime was not very comfortable!
Then I thought I will get the Nexus One. Did some reading and realised that the display is fragile and that it has some issues with the battery. So became sceptical.
Then came across the HD2. Fell in love with it. I have used Windows Mobile before and used to love it then. Suited me very well. Also, the people at xda are capable of doing anything with a WM phone. Also, there is news that HTC will indeed come up with a Windows Phone 7 rom for it. Only issue is that people are saying that its a little too late to get the HD2 now that MS has officially launched the Windows Phone 7 OS.
So I am now more confused than ever.