Great little phone
My wife got one of these and absolutely loves it - the screen is low res but still very clear (I've got a desire and the screen is noticeably lower quality when compared side by side but taken in isolation it looks fine)
Also, more and more apps are supporting the QVGA screen now (even CoPilot, which is surprisingly usable on the small screen). She had an iPhone (3G) and a Pre before this and the Wildfire is definitely her favourite of the 3.
One big advantage of the smaller screen is there aren't as many pixels to push around so the lower spec processor chugs along really nicely and performance is more than acceptable.
She got the Wildfire instead of the desire because she wanted a smaller phone than the desire but with the fantastic Sense UI.
I was concerned about the QVGA screen because, well, it's QVGA, but she had a good test of one and decided it was exactly what she was looking for. That pretty much sums it up: If you're not hung up on the specs, then the Wildfire is a fantastic little phone. If you want to play spec top trumps then there are better devices out there...