I don't agree that they simply wont bring out a new device because the N1 didn't sell that well. It is still an amazing device, I just feel the marketing was very sub-par and so much so that maybe not enough people knew about it.
Let alone the fact you could only get it from Google direct from their website and no retail store had it. Simply stupid in my opinion. - Even though I purchased direct from Google and had it shipped to the UK
Also, the fact that they've done so much work on Android with Froyo just being released leads me towards the fact that surely they can't keep developing Android for a phone that eventually will become out-dated (if it isn't already!)
I know Froyo isn't just for the Nexus One but it's the first device it's created for and seems to be their test platform for everything at the moment.
Roll on another Google phone I say, but it doesnt have to be any time soon.