So Google is giving free phones to developers who had at least 3.5 star ratings and 5000 unique downloads as of February 2010. reddit is fun met the conditions and I'll be getting a free Droid or Nexus One (based on "random distribution")!
TechCrunch has a posting about it so I'm pretty sure it's not a scam!
Thank you redditors!!!!! And of course thank you Google!!!!!