In a number of ways (CPU, internal storage most notably), this cheap and cheerful phone is better than the Xperia Arc S that I got just three years ago, for £300. The screen's not quite as shiny, I bet the camera is nowhere near as good, but for well under a hundred nicker after conversion, who cares?
If it has the usual required functions of an SD Card, portable access point/tethering, and a half decent (removable) battery, then colour me interested. I'll keep the old droids around for the apps and games, but this thing I'd happily use as a phone, so long as it works nicely.
In fact I imagine a lot of people won't give a damn so long as it works like a phone.