It was so close I could taste it. Two weeks ago we were ready to publicly launch the CrunchPad. The device was stable enough for a demo. It went hours without crashing. We could even let people play with the device themselves – the user interface was intuitive enough that people “got it” without any instructions. And the look of pure joy on the handful of outsiders who had used it made the nearly 1.5 year effort completely worth it.

Our plan was to debut the CrunchPad on stage at the Real-Time Crunchup event on November 20, a little over a week ago. We even hoped to have devices hacked together with Google Chrome OS and Windows 7 to show people that you could hack this thing to run just about anything you want. We’d put 1,000 of the devices on pre-sale and take orders immediately. Larger scale production would begin early in 2010.

And then the entire project self destructed over nothing more than greed, jealousy and miscommunication.

Yesterday we wrote about the soon to launch Google Phone, a Google branded Android phone that we believe will hit the market in early 2010.

Lots of people are saying there’s no way Google will enter the phone market directly and compete with all these handset manufacturers who have bet on Android. Daring Fireball, PC World and IntoMobile are among the doubters. And a lot of people are pointing to a Tom Krazit/CNET article last month that quoted Google’s Andy Rubin: “We’re not making hardware…We’re enabling other people to build hardware,” and “Rubin, vice president of engineering for Android at Google, scoffed at the notion that the company would “compete with its customers” by releasing its own phone.”

Normally I’d just point to the fact that many companies deny the existence of products until the day they announce them. Apple scoffed at the notion that they’d ever build a phone until they announced the iPhone, for example. The last thing Google wants is a lot of confusion among handset manufacturers just when those manufacturers are putting the finishing touches on their own Android phones.

But there may be another way Google will argue that they aren’t “competing with customers” by launching their own device – technically, it may not be a phone.

The Google Phone may be a data only, VoIP driven device. And Google may be lining up at least AT&T to provide those data services for the Google Phone, says one person we spoke with today.

The debate over Droid v. iPhone rages on, but lots more Android surprises are on the way. Get ready for the Google Phone. It’s no longer a myth, it’s real.

The next “super” Android device will almost certainly be a HTC phone that’s much thinner than even the Droid or iPhone – The Dragon/Passion. This is the phone the senior Android guys at Google are now carrying around and testing, at least as of a couple of weeks ago. If you’re willing to give up the Droid’s keyboard, the Dragon/Passion is going to be a really cool phone. It should be fully available very soon.

But it isn’t the Google Phone. Everything up until now has just been a warm up to the Google Phone.

Way more interesting are the rumors we’ve been hearing for months about a pure Google-branded phone. Most of our sources have unconfirmed information, which we describe below. But there are a few things we have absolutely confirmed: Google is building their own branded phone that they’ll sell directly and through retailers. They were long planning to have the phone be available by the holidays, but it has now slipped to early 2010. The phone will be produced by a major phone manufacturer but will only have Google branding (Microsoft did the same thing with their first Zunes, which were built by Toshiba).

There won’t be any negotiation or compromise over the phone’s design of features – Google is dictating every last piece of it. No splintering of the Android OS that makes some applications unusable. Like the iPhone for Apple, this phone will be Google’s pure vision of what a phone should be.

That’s it for confirmed, super-high confidence information, which frankly isn’t a whole lot more than we all heard back in late October. But we also have a few more details as well that we’ve gathered from a number of sources. Everything that follows we still consider to be just well-sourced rumors:

Google’s Chrome OS project, first announced in July, will become available for download within a week, we’ve heard from a reliable source. Google previously said to expect an early version of the OS in the fall.

What can we expect? Driver support will likely be a weak point. We’ve heard at various times that Google has a legion of engineers working on the not so glamorous task of building hardware drivers. And we’ve also heard conflicting rumors that Google is mostly relying on hardware manufacturers to create those drivers. Whatever the truth, and it’s likely in between, having a robust set of functioning drivers is extremely important to Chrome OS’s success. People will want to download this to whatever computer they use and have it just work.

We expect Google will be careful with messaging around the launch, and endorse a small set of devices for installation. EEE PC netbooks, for example, may be one set of devices that Google will say are ready to use Chrome OS. There will likely be others as well, but don’t expect to be able to install it on whatever laptop or desktop machine you have from day one. Google has previously said they are working with Acer, Adobe, ASUS, Freescale, Hewlett-Packard, Lenovo, Qualcomm, Texas Instruments, and Toshiba on the project.

We’ve seen convincing and not so convincing screenshots of Chrome OS over the last several months. The good news is the speculation is about to end, and you can try it out yourself. If you have one of the supported devices, that is.

If you are a tech lover, there is nothing quite like the launch day of a much hyped new gadget. Expectations run high. And since those expectations are rarely satisfied once you have the special little device in hand, it’s a moment to savor. In the hours before you own it, that device is perfect in every way. It will make you happier, a better person. There are no bugs, there are only features. It is whatever you want it to be.

Launch day of a new cool gadget is the closest thing to being a kid again on Christmas day (or whatever your winter solstice holiday of choice). You’ve anticipated the day. You’ve called in sick to work. And you are standing out in the freezing cold at 7 in the morning, hoping your place in line assures you a device before the carefully-planned sell out occurs. You’ve worked yourself into…a Fever Pitch.

I’ve always been let down with the real world gadget after that high of anticipation. But that’s ok. It’s part of the cycle of tech.

Today is Droid day. In just a few hours Verizon stores will open and the first customers will get their hands on their very own Droid.

And I promise you, if you are one of the people waiting in line, you will have a much lower than average amount of letdown. That’s because, in my humble opinion, the Droid is the coolest mobile phone to exist to date. It is as close as we’ve come to the Platonic ideal of a smartphone. It’s very existence ensures that the next iPhone will be even better than it otherwise would have been. Competition is good.

Yes, this is an unabashed love letter to the Droid. If you want the dispassionate reviews, we’ve got em. And then some. That isn’t what this post is about.

If you weren’t sure about switching to an Android phone in the near future, this might put you over the edge. Google Maps Navigation is an absolutely killer app. And it is only available for Android 2.0 phones.

Today is Droid day, and for the most part Google is taking a backseat and letting their partners get most of the attention. But Droid is the first Android phone to run Android 2.0, and Google Maps Navigation is clearly the early trophy app for those devices.

Features, video and image gallery below:

Yeah ok it isn’t that Apple Tablet. But this is a picture, taken around 1990, of the Apple Pen Mac, a little known and never launched Apple tablet project. As far as we can tell there is no other image of this device anywhere on the Internet, and very few references to it at all.

The Pen Mac was a fully functional Mac computer (it even played the Mac startup chime) with a pen based touch screen. The screen itself was identical to the Mac Portable, but with the addition of pen touch. And of course the case was a lot smaller than the Mac Portable. The Pen Mac was supposedly not much more than one inch thick. Users could plug in a keyboard and mouse or easier input.

Holding the Pen Mac in the picture is Glam CEO Samir Arora, who told me about the device over dinner a couple of weeks ago. Arora worked at Apple on the project, eventually going to a spinout company, Rae Technology, which was designing applications for the Pen Mac. Rae Technology eventually morphed into NetObjects.

The Pen Mac project was led by Paul Mercer but was eventually axed in favor of the Newton. Then Apple CEO John Sculley wanted a PDA, not a tablet. From a 2006 NY Times article:

Google Voice is a great way to manage phone hell by giving you a single phone number that automatically rings your mobile, home, work and other phones based on your choice of rules and settings (who’s calling, when, etc.). But people are still stuck with their legacy phone numbers, and moving completely away from them is difficult.

Verizon and Motorola finally lifted the curtain on their new Droid Android phone yesterday. Make no mistake, this is Android’s flagship product, and the first phone that will pose a significant threat to Apple’s iPhone. And it will be available very soon, possibly as early as the end of this month.

MobileCrunch has been tracking the phone, which has also been called the Tao or Sholes, for some time. Just about anyone who has come in contact with the phone can’t stop talking about it. And from what we hear, they have good reason.

The phone is a three-way effort between Motorola, Verizon and Google. It looks a lot like the iPhone, and may even be as thin or thinner than the iPhone 3GS. It also has two key advantages over the iPhone – a slide out physical keyboard, and use of the Verizon network.

Unlike previous Android phones, the Droid is rumored to be powered by the TI OMAP3430, the same core that the iPhone and Palm Pre use, and which significantly outperforms Qualcomm 528MHz ARM11 based Android phones that exist today (Engadget has a great overview article on mobile CPUs).

Hewlett Packard refreshed their TouchSmart line of computers today. If you’re not familiar with these, imagine an iMac all in one computer that has a touch screen, and you’re most of the way there.

I really like the TouchSmart line, and use a second generation machine as my main Windows test computer. The touch interface is done via infrared, which is a very cost effective way of creating a touch interface on a large screen. Microsoft, in fact, uses it in their experimental TouchWall product that can make a touch screen of virtually any size wall (more TouchWall footage).

Overall I give the TouchScmart top marks – the only drawback is that it is inexplicably heavy at something like 60 lbs., and no one seems to know why. But since it sits on your desk, it’s not like you’re lifting it very often, so it doesn’t really matter.

But the machine is still all wrong. Anyone who has used one for a long time will tell you that they quickly revert to using the keyboard and mouse. And it isn’t because of the software or touch technology – both are fine.

Wow, if nothing else, new European music service Spotify, which is yet to launch in the U.S., has captured everyone’s attention. TechCrunch Europe reports that Swedish telecommunication service provider Telia will soon release a Spotify-branded mobile phone.

A source with knowledge of the deal tells us that London, UK based INQ is developing the Spotify-branded phone. The company already creates phones with tight integrations to social networking services like Facebook, Skype and Windows Live Messenger.

INQ is backed by Li Ka-Shing, who recently invested in Spotify.

We’re still gathering details on this, such as date of availability and price. The phone is in the design stage right now, and there are plans, we’re told, to roll it out to all markets via partnerships with various carriers.

Last week we showed the highlights and 10+ minutes of video footage of an exclusive hour-long TechCrunch interview with Microsoft CEO Steve Ballmer.

Now for the rest of that interview. The video was just a teaser. I spoke with Ballmer for another 50 minutes on the record, doing a deeper dive into five key areas of Microsoft’s product strategy: Big Opportunities, Operating Systems/Browsers, Mobile, Search and Developers.

This post is about big opportunities at Microsoft beyond their dual cash cows of Windows and Office. Microsoft generates around $20 billion a year in pre-tax profit, and spends nearly $10 billion on research and development. When Microsoft thinks about increasing (or sustaining) those profits, they have to think big. And they have to think long term.

Ballmer says he thinks about new business opportunities in three buckets: expanding current businesses (short run), building things from scratch (long run), and big aquisitions (short cuts).

Last week I saw some coverage of this new HP device called the DreamScreen. And more than a couple of blogs were comparing it to the elusive Apple Tablet. Given my extreme interest in this space, I thought I should get this new DreamScreen in my hands as soon as possible and see if HP had indeed beaten Apple (and us) to the punch in delivering the first high quality tablet computing experience to consumers.

The press: “Want a hint at how the much-anticipated Apple Tablet might be shaping up? Take a look at the HP DreamScreen,” said one of those blogs, adding “this certainly looks like what we’re expecting from the Apple Tablet.” Another site: “Hewlett Packard has beaten Apple to the punch in coming up with a beautiful tablet-like computer.” Engadget called it “something special.”

The reality: I can’t repeat here what I wrote on Twitter because of the sensitive nature of the TechCrunch audience, but I will say this. The HP DreamScreen is possibly the biggest piece of crap to ever grace my desk. Which is saying something.

Amie Street always made sense to me. The idea is to show demand for music via variable pricing. Songs start off free and move up in price (up to 98 cents) as more people buy them. I first wrote about them in 2006 when the founders were still living in a dorm at Brown University. In 2007 Amazon invested in the company.

Palm will unveil its second WebOS phone this week, internally named the “Pixie,” we’ve heard from a source close to the company. The debut will occur as part of Fashion Week in New York.

As we wrote back in April, the new phone will have the same operating system as the Palm Pre but will be much lower priced ($99). The latest information we have on the hardware specs is here.

A source with knowledge of the situation tells us that Dell is launching a mobile phone in China in the next day or two. We are trying to verify the information and gather more details on the hardware and operating system now.

Our sources on new hardware coming out of Asia tend to be spot on (we broke the news of the second and third generation Amazon Kindles, the launch of the Palm Pre and the existence of the second Palm WebOS phone and generally have good information on sales figures for iPhones, Kindles and other devices). But in this case the information we’ve received is extremely thin.

At the end of July I declared my intention to quit the iPhone and AT&T, port my mobile phone number to Google Voice and use any mobile device that I pleased (or lots of them at once) in the future. Today I’m pleased to report a status update on those efforts: complete. I am no longer a member of the Cult of iPhone.

Dell has retired their 12-inch Intel Atom-powered netbooks, they said today. The official reason – “It really boils down to this: for a lot of customers, 10-inch displays are the sweet spot for netbooks…Larger notebooks require a little more horsepower to be really useful.”

That makes absolutely no sense, since it requires no additional hardware horsepower to power a 12-inch netbook v. a 10-inch netbook. The only difference is power usage from the bigger screen. And the two extra inches more than makes up for the shorter battery life or slightly heavier device from packing in more batteries. It only costs a few more dollars to build a 12-inch v. a 10-inch netbook, and users get a bigger screen with the same performance.

Google Voice, previously called Grand Central, is rolling out the first mobile apps for the service this evening. The main function of the apps is to make it easier to use your Google Voice phone number by automatically routing outbound calls through Google and to the recipient. We first mentioned they were coming last month when we broke the news that Google would start letting users port their phone numbers over to the Voice product sometime this year.

Google Voice users get a phone number that should be the only number you give out to people. You route calls to mobile, home and other phones based on who’s calling and when. But there’s always been a nagging problem with the service – when you call out from your phones, people don’t see your Google Voice number on caller ID. They just see whatever phone number you are calling from. That means your friends have to store another phone number for you, or they don’t know who’s calling.

It’s hard to type a blog post when one hand is being used to pat myself on the back.

Last year I wrote a post about the just launched Chrome browser titled Meet Chrome, Google’s Windows Killer. From that article:

Chrome is nothing less than a full on desktop operating system that will compete head on with Windows…Expect to see millions of web devices, even desktop web devices, in the coming years that completely strip out the Windows layer and use the browser as the only operating system the user needs.

One representative response to my quote above, from The Register: “In no way can this statement be construed to make sense, and I’m not just being a pedantic asshole here. Fortunately, El Reg readers are with it enough to know that you need a proper OS before you can have a browser.”

Like most people who’ve had an iPhone 3GS in their hands, we’ve been extremely impressed with the video capabilities of this little device. Not only Does it take near-HD video, it has excellent basic editing software and video can be uploaded to YouTube over Wifi or the cell networks. Among other things, it is the most useful video camera in the world today. No wonder the video camera market is shaking in its collective boots.

Thank God those iPhones are so expensive, and Apple will only sell 20 million or so of them in 2009. If Apple added cameras to its line of iPods, there would be another 3+million of them hitting the market per month, and the low end of the digital video camera market could be crushed.

Uh oh.

That’s exactly what we’re hearing is going to happen. One of our sources in Asia say that Apple has placed an order for a massive number of camera modules of the type that they include in the iPhone. These are inexpensive cameras, in the $10 range. And the size of the order, our source says, means they can only be used for one thing – the iPods.

Last summer we broke the news that Engadget editor-in-chief Ryan Block would team with former editor-in-chief Peter Rojas to create a new gadget startup. Today that new startup, GDGT, launches. Gadget lovers rejoice – this is a social site where you can obsess over those tiny bundles of tech joy among others just as geeky as you.

GDGT (pronounced “g-d-g-t,” but I like to just say “gadget”) is a highly structured wiki that centers on tech gadgets. Like our own Crunchbase, anyone can edit any information on the site, but everything is structured which allows for lots of slicing and dicing of the data.

Users select gadgets that they own, used to own, or want, and can add reviews and ratings. Blog reviews are threaded into the discussion as well:

Lots of excitement today over a second Palm WebOS device now that the Pre has launched. The only problem is that none of this is news. We broke the story about the device, code named Pixie, on April 29. A day later we had the Pixie name and additional details.

As far as I can tell there are no additional details coming out now. So I’ll supply additional information that we’ve gathered. Our sources in Asia tell us that Palm continues to push development of the device but is far from making a launch decision. “Palm has decided to put the Pixie on hold until they have better visibility into how its current models are selling in the market.”

Our guess is that low Pre sales rates make it less likely for the Pixie to hit the market this year. Palm’s WebOS is the best mobile operating system in existence, in our humble opinion. But the hardware is, at best, a B.

We’ve been working hard behind the scenes on the CrunchPad since our last update in April, and have just about nailed down the final design for the device. We’re showing the conceptual drawings here today. In another few weeks we’ll have the first working prototypes in our office.