Factory reset got Backup Assistant working for me yesterday. I lost the two Tasks I had on the phone, but the Contacts that are not in Exchange are once again correctly synchronizing to Verizon.
I'm still reinstalling apps, a few at a time, then manually synchronizing Backup Assistant to to see if I can identify an app that might have killed that function.
+1 on having no use for GMail, and I'll raise you my irritation at Google's new privacy policy, which is only supposed to apply if you're logged in to a Google service ... Of course, in order to access the Market and other services, you have to log the phone in, and there's no option to log out once your activities on those services are complete. Arggh.