I bought this device few days back after some bad experience with HTC Diamond.
So far, I'm very happy with it, especially the multimedia performance.. really no lagging.
Web browsing with IE was very smooth as well. 2.8" for me is still ok, as i don't like to keep something too bulky in my pocket.
In fact, I quite like the simple and sylish design, with only the mini USB port as the only port (for recharging, headphones, connect to PC).
For me, too many 'holes' on your device doesn't seem very nice.
The speaker, though, loud enough and I like the bass coming out from it.
I used quite alot of GPS and it lasted more than 1 day for me.
Certainly seems like good value for my money.
..the speedy processor does make a difference.