I like my G1, but have on occasion ass-dialed people because of button location. If I think that's likely (depending on where I'm carrying the phone at the time), I set the phone to require a pattern be drawn to unlock it. The pattern I use is simple enough to draw with my thumb, so it's easy to grab the phone, unlock, and use with one hand, (mostly) without looking.
The "red button to hang up locked phone during incoming call" could be considered bad design... but I guess you want to shut the ringtone off quickly if you are in a quiet place. (My phone is set to go to vibrate as soon as I leave my house. So this is not a problem for me... but neither is accidentally hanging up.)
I've used an iPhone, and it's frustrating that I can't easily tell which end is up or silence the ringer (not hang up the call) without pulling the thing out of my pocket.
Me, personally, I would take an Android over a closed-platform anyday, but the Sony Ericsson line of phones I found very use-friendly, beautiful and powerful (don't know how much they cost, since I get them as free promo units.)
This is the number-one reason I hang onto my 2003-ish dumbphone. Is it possible to make a decent smart flip-phone?