I believe that's also a phone with Sense. Maybe that's the problem. Sense is pretty deep into the OS, which is why you can't just install it on another Android phone without some major work. I could see the process of upgrading the phone being a problem.

So yeah, I agree, it kind of stinks. Doesn't sound like the end of the world to me, but that's probably just because I can't stand SMS and MMS, and because I've just recently gone through the process of reinstalling all my apps when I went to my Nexus One.

But you know what's great about Android in this case? There's certain things that make the process less frustrating. For instance, when I moved to the N1, I had to write down which free apps I wanted to re-download, but all the apps I've purchased automatically show up in the downloads section, so I don't have to go hunting for them. Another nice thing is that I was able to simply copy and paste the data from my micro SD card onto my new, bigger card for the N1, and when I reinstalled apps that used that data, it was all already there.

There's definitely annoyances when upgrading or migrating on Android, but as a matter of fact one of the items at Google IO addressed this, and will make migrating to a new phone far easier on future versions of the OS.

Now, I don't want to get too negative on the competition here, because I know that never in a million years would you agree with this, but the iPhone has the opposite problem. If you migrate to a new phone, it's all hunky dory, but if you get a new computer, the process of migrating all your data over and keeping your iPhone from getting messed up is nearly impossible for the average user. Heck, I attempted it and there were still big problems. So yeah, I think that Apple's main fault when it comes to upgrades is that the phone is still so tied to the computer, whereas for Google the problem is that their OS is not as tied to the cloud as they claim it is, but that's changing soon.
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Matt