Google a loser?
The iPhone 4 just caught up to Android with the release of iOS4. Android had multitasking, folders, a universal inbox, in addition to voice search that is fully integrated into (almost) every ap. All of this is only with the 2.1 release too. 2.2 is coming in the next few months that will add even more functionality and speed to the platform.
As for the handsets themselves, the Motorola Droid (or Milestone) is not the only Android device out there. There's the HTC Incredible, which is being advertised over the Droid in addition to lower cost devices like the ERIS and Devour. The Droid will get a refresh soon too, which you fail to mention. Most importantly, the Evo goes punch-for-punch against the iPhone 4. You can pick a side if you want, but neither phone is better than the other.
The keynote essentialy said that Apple can match Android right now against the Evo, but the Android platform is growing much too fast for Apple to keep up.