I know you have all been losing sleep about what phone I bought in the end, well, I bought it today!! Took all what yous said into consideration, looking at pricing and capabilities. I dont use my phone a lot, a few quick calls, a few more txts, so didnt want to spend a fortune.
I bought a little
Wildfire (bargain at $199 at Dick Smiths), and am in love.

I cant stop playing with it (the phone), downloading Apps left right and centre. Is this addictive???
Bought a $60 prepaid (the one that lasts quite a few months) and will see how it goes.
Downloaded the HDR App today (along with about 20 others......) , and cant wait to take a pic with my 5 megapixel camera.