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Nexus One Users
How do you combat the low internal storage space for applications? I feel like Solomon every time I download something new because it means something else has to go. Not enough apps allow you to move them to the SD card; the Google apps are the worst, most bloated offenders in this regard.

While I'm complaining:
It turns itself off when I drop it, even from just an inch and a half high as I fumble to pick it up off a table.
Google Music/Google Listen will start to play when I unplug my headphones, even if I didn't have those apps open.
Registering on the network or switching from 3G to 2G is often wonky (thought this is probably just a me/T-Mobile thing).

That said, I love the phone and hope I can upgrade it to Ice Cream Sandwich because I like the form factor a lot more than the Galaxy Nexus. cf.
Sam Castillo's profile photoFred Lassen's profile photoDavid Hall's profile photoJonathan Seyghal's profile photo
I've a Nexus One and its almost a daily activity for me to make space on it. I use App2Sd. About the only way to reduce this whilst keeping the standard build (no mods) is:

* plan on keeping at least 20MB free always
* shred the caches (not data which holds info to enable logins etc) via the built in app manager. Maybe there is an app to do them all in one go?
* delete my Contacts Storage mine has grown to 12MB at times (and prune the contacts)

The problem I have with the Music app is the opposite to yours - if my headset gets unseated slightly the music stops even if its reseated. I've got to go back in and hit play again.
I still have an N1 and never thought to ask about this since I know I'm behind the curve cause it's not even 4G - but I feel EXACTLY the same way!

And yes, same damn thing with the headphones - it's terrible and sometimes embarrassing.

I even move all the apps I can to my SD card and it barely helps. Surprisingly, you can't move most of them. Which I don't get at all.

It is my biggest grievance. Along with the battery life ( I travel with 2 spares ). And the fact that my charger connectors always become loose after a month.
I use the Desire which suffers the same problem. As others have said, it requires rooting your device and installing a rom that supports dt2sd which then requires you create an ext3 partition on your sd card. It's a bit of a pain to initially set up but once it's ready you never have to worry about internal space again. :) 
I will also keep my Nexus One for a long time, but you have to install urgently a Cyano Room and all your problems (with the phone;) will be solved!
I have the desire as well and had the same problems until I installed CM7 and the simple2ext app which moves loads more into the sd card. eg Adobe Flash takes up 11MB initially, when moved to SD card it takes up 76kb, many other apps are the same, and it doesn't use data2sd hacks which I have found cause massive lags.
Simple2ext @

really cannot recommend this highly enough, it has given a whole new lease of life to my phone!
As I said earlier, I have a Desire but in case somebody is interested, it seems this ROM has Anything2Ext built-in.
Yeah, I've used that suprnova ROM. It took ages to setup, and did work quite well at first, but started lagging badly when I started installing stuff. Had to uninstall it in the end, made the phone almost unusable.
Move as many apps as I can to SD (esp. games)
I tried three different SD cards from class 4 to 8 same lag, lots of hassle. Gave up and used the method I'm using now, which is working brilliantly. 
Sarah, I used to have an N1 too. Now I have a Nexus S, and really like it, but the N1 feels better. Form factor.

I can't recommend the CM7 ROM highly enough! 
I'm afraid rooting and installing a custom ROM which allows you to partition your SD card and move your /app folder to that partition is the only real way of fixing this problem. CyanogenMod 7.1 is very very good - if you use this, S2E (as Sam recommended) is a very simple SD script with good performance.

I rooted mainly for this purpose, and haven't looked back since.
I am ( perhaps surely in vain) sticking with vanilla Android on my Nexus One and in order to deal with the memory issues have been forced to uninstall Flash player. Yes it's one of the advantages of Android over the iPhone but to be honest the experience is never that great. Since doing that I've been given some needed breathing space with regards to internal memory.
Regarding the headphone issue, I like that the music stops when the plug is pulled out. Should it happen by accident there is no embarrassing loud music/podcast and also when I need to pause said podcast suddenly to talk to someone I can just pull the plug out!