I read in an article that the G1 does not support multi touch but the iPhone does, I see this as more of as disadvantage then the author of the article does, user interfaces are becoming more important and end users are expecting more demanding after all.
Does anybody know if this is a limitation of the touch screen on the G1 or is it a limitation of Android?

There is a way but its a hack, so may not be possible on all devices. More info here: gizmodo.com/5097166/android-multitouch-p...-pretty-but-it-works and heres how it looks:

Mixed emotions on that, the hardware can handle it but Android does not support it without hacked firmware (yet?).

Oh well at least I know now, thanks for the answer.

Its probably that plus some legal tomfoolery. Theres more info here: androidguys.com/?p=2830

Another video:

Apple has just been granted the multi touch patent: patft.uspto.gov/netacgi/nph-Parser?Sect1...949&RS=7,479,949