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Factory Reset After OTA 2.1
The phone will reset to 2.1, but when it does, the phone will be like you just took it out of the box. Follow the onscreen prompts - you will be prompted to call Verizon to have them program the phone just like when it was new. You will also have to sign in to Gmail and your other email accounts, but after that all of your Google stuff will sync with no problems. So if your contacts are Google, you're home free. You'll have to re-establish bookmarks and all of your personal settings, plus download your apps again.
The initial factory reset and Verizon programming took about 10-20 minutes. The other setup depends on how much you have to re-establish.
The bottom line was that yes it was a hassle, but hey, I have a fresh new phone with some of the trash I had collected weeded out, and a lot of new features.