I bought my wife the original Droid about 15 months ago and she loves it. I switched from the Blackberry Tour to the HTC Incredible last May. I'll never own another BB again. This is my second HTC phone with the first being a Windows mobile a few years ago.
Rooting your phone should be simple. To get mine ready, I had to follow about 5 steps (download the Android SDK, turn on debugging, plug in cord, etc) and then I hit a button on the PC. Boom -> rooted. Compared to a softmod on an original Xbox or Wii, it's the easiest thing to do. If you can re-assign a button in Mame, you can more easily root your phone.

Once rooted, you can easily get rid of all the junk on your phone. I wouldn't use Bing ever so you can change that. I got rid of Facebook, some stupid Twitter client, and a bunch of other bloat. I have tried out a few other custom ROMS but, to be honest, I absolutely love HTC's interface that I haven't found anything better.
I agree about turning on/off the GPS when in use or not. The same with Bluetooth and Wi-fi.
Rooting does give access to Wireless Tether which is simply incredible and free. Adfree is another great app for a rooted phone. Hell, I didnt know Angry Birds had ads until I saw my wife playing and asked WTF is that. I had never seen the ads on my phone.
Google Voice is great as was said. I ported my number from Sprint to Google which has some incredible benefits.
Docs pics is a good Google docs app as is Gdocs. I use both (one for personal and one for work which is a Google Apps account). Barcode scanner is good as is Google Shopper to compare prices, read reviews, etc. I've played with Google books but have found it's too small to easily read anything on there for a long period such as a book would be.
For games, I play Cribbage Pro, Droid Mini Golf, Unblock me Free, and a few more popular games.
If you aren't a regular user of Gmail, I'd suggest getting familiar with it and integrating your calendar, contacts and everything into Google's apps and your phone. It's really a multi-function device or portable PC than just a phone.
Google being open source with their OS makes it a much more pleasant experience than what I have found with iOS.
I am, unashamedly, a Google fanboy.
