The day I received my Magic, HTC released Hero and it totally pissed me off. That's because I wasn't aware they were to release a new Android phone. But that's fine, now that I have read so many reviews about Hero, I am having second thoughts about it. The device has the same processor and memory as Magic but with much much more functionalities which consequently makes it too sluggish.
I saw a video of someone comparing Hero to G1 and you could see the difference, in time needed to start them, in switching between screens, scrolling in the calendar and other.