I would actually prefer a well done LCD display to the still rough first-gen OLED display (at least in the N1/Incredible incarnation). The obvious difficulties in direct sunlight aside, there are actually a host of other issues with the OLED display used on the N1 that people don't seem to talk about much.
See here:
http://www.displaymate.com/Nexus_Droid_ShootOut.htm
The Droid's display has an almost perfect sRGB color gamut, close to reference gamma curve, and near 6500 K color temperature. That sets up graphics to be displayed as intended in terms of color and contrast ramping. The Droid's display wins in almost every other measurable display quality/performance metric--aside from viewing angle and black levels at high brightness which is a clear win for OLED because of its emissive properties (no backlighting).
The actual/real usable resolution of the N1's OLED display is less than the stated 800x480 because each pixel on the display lacks its own red, green and blue sub-pixel. When comparing text side by side on my Droid and a friend's N1, the text on the Droid is cleaner and sharper looking due to better sub-pixel anti-aliasing. In fact when you look at text on the N1 display at a close enough distance, you can make out individual pixels with the naked eye. On the Droid this was never the case until we actually put it under a magnifying glass. Ars has a good write-up about this here:
http://arstechnica.com/gadgets/news...nexus-ones-screen-science-color-and-hacks.ars
My friend and I have spent hours and hours comparing our phones and the longer we've had our phones, the more we've agreed that the Droid's display is easily the superior one. Colors aren't hyper saturated as on the N1's OLED, which tends to exaggerate red/orange tones the most, leading to pictures of everyone looking like they've had a few too many drinks. In other cases, colors appear where they shouldn't in some grayscale areas, and banding is clearly evident in just about every gradient. Of course to the general masses and untrained eye, hyper saturated colors probably makes the display seem a lot better than it really is. It's somewhat akin to TVs being shown in 'torch mode' at your local Best Buy--most people think that actually looks good until they're shown what a properly calibrated TV should look like.
In my opinion--and that of my N1 owning friend--the black levels are great, everything else is just passable, direct sunlight usage is out of the question, and the hyper saturated colors are quickly tiring on the N1. The biggest thing is that he's slowly getting tired of the N1 display while I find it an absolute pleasure to use the Droid's display and that sentiment only grows stronger every day. Hopefully the next generation of OLED displays won't skimp on the sub-pixels and will get the colors issues under control.