While I think that a tracker would be a great idea, the GPS seems to be somewhat broken right now ("My Location" in Maps with GPS on points 3-5 streets away). There is a possible alternative, however.
There are two applications out right now (Android Found and Owner). They are supposed to give information to anyone who has found your phone. I personally downloaded Android Found. The problem is that they don't show up on the lock screen [yet], but they probably/hopefully will soon. With Android Found, you can also type in a message. In the message, explain to them that if the G1 is reported stolen, the device will be locked because of the IMEI number, so there is no point in stealing it. Maybe offer some money for a return as well?
Just a thought...
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