All the bad points you have mentioned have now been fixed on the Ngage QD. No more side talkin', no more removing the battery to swap cards.
Personally, I quite like the new one. Since it's just a standard smartphone under the hood, there's lots of free games available for it. I've also seen it being advertised for £99 inc a game, which easily makes it the cheapest smartphone available. And finally we're starting to see some good games for it too. There's recently been a couple of internet-enabled games which have received excellent reviews.
As a serious console, it's not the best. But as a cheap phone/console for a quick blast on the train home, it's not a bad choice
IMO.