I've just bought the Canon 15-85 2nd hand for significantly less than £400. Might need to shop around though.
(New ones can be had from Panamoz for £439)
I'm thinking about getting one of these, potentially the next size up. Popping to look at some in the shops tomorrow, but would be interested to hear how you've got on with it.
I had a similar conundrum recently, my existing phone was a HTC Hero like yourself. I've never been a fan of apple and think android is a better platform, but i considered the iphone.
I ruled out the iphone because I didn't want old technology (iphone4) and couldn't wait an undetermined time...
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