Nexus One is Google’s smartphone that never took off. It tried to compete with the iPhone, Blackberry, and Droid but never won the battle.
After a disappointing 50,000 units sold over several months, Google is shutting down the Nexus One Store and production.
Google will still offer support for the Phone, and the phone will still be available to be sold in some local markets in Europe.
Looks like the Nexus One is the only Android Phone to not take off.

Its too bad actually. The Nexus One is still a great phone and quite possibly the fastest phone so far with its JIT compiler.
I read this article about why this new marketing strategy was such a failure. You can check it out at http://getyourgadgetsgoing.com/2010/05/17/google-takes-nexus-one-back-to-the-basics/
Annoyingly long setup for screenshots though.