Sorry if this is being repetitive, but just to clear any doubt up: you can actually upgrade yearly on any Verizon plan. You get the advertised pricing, but you have to pay a $20 upgrade fee. If you wait for two years there's no upgrade fee, and if you are the main line (or only line) then you get an additional $50 off (although Verizon has dropped it to $30 if you have a newer contract, at least that's what the rep told me). Also, you can only do the yearly upgrade through Verizon (in-store or online), which I learned when I tried to get my Droid from Best Buy to avoid the mail-in rebate junk.
Also, about Android only allowing you to install apps to the internal memory: yes, it is true, but as Blazingwolf mentioned most apps are really small (MUCH smaller on average than Windows Mobile apps). I've already installed a ton of apps/games on my phone and I've only used around 80MB of storage, so I really don't see it being a problem. And just for clarification, although it does have 512MB of storage you can only use about 256MB of that for storing apps. Once again, I really don't think it's going to be a problem.
The only thing this phone is lacking is...wait...ummmmmm...still thinking...uhhhhh...well, I can't think of anything
Hopefully it stays that way!