Yes i was considering the droid but how soon before it's going to be outdated?
They'll always be something better coming out for cheaper down the line but if it handles everything you need it to now it'll likely stay that way in the future. My £30 phone I got years back still makes calls, sends texts and takes very bad pictures.
I do love the android OS - it's much more extensible, open and better written than the Apple / Microsoft equivalent. Only downside is it generally takes a lot longer to boot up. But if I was investing that much in a phone I'd take the android OS any day.
Other advantage is if you're a Java geek like me, you can download free tools and start developing / whacking applications on it really easily, and it's a joy to code around it.