If the phone is for an Android "rookie" (someone new to Android and not necessarily thinking about rooting their phone), the Ally makes for a great starter, especially if you're a fan of Big Red's network. If migrating from another Android phone, then the Droid 2 (possibly the X, if you need a larger screen, or the Samsung Fascinate if you want the butt-kicker combo of S-AMOLED and Android on VZW) would make more sense than the Ally or even a Droid.
FYI...The Verizon Store guy said that the Ally processor not fast enough to handle 2.2. I choose not to belive him.