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Up until recently, apps had to take up very little space. This is true with the Hero, but not as stringent as other even older devices with half the internal memory (looking at your G1 and your 70ishMB). We get 159MB, which isn't bad, but it isn't nearly as good as a lot of the newer phones that offer more. Plus, apps2sd is more common now since it was introduced natively in 2.2 (if the developer allowed) but has been around for the rooters for some time now. Games are coming out in full force now because a lot of the phones are coming with GPU's (don't try a 3D game on the Hero, it doesn't have a GPU to speak of and will make you want to throw the phone out the window, but its 2D games run great!, so there are still plenty of fun games in the market to choose from). Palm has very very few good apps. I know, I made the switch from the Pre to the Hero, and would never look back. And don't look for a new device from Palm for a while, I think HP wants to use WebOS in other areas, and HP's hardware track record isn't great, so you're still looking at a polished turd even if they do release a new device.