Hey All - for those of you who are rooted, there is a quick way to get more space on this phone. You need to get to a shell, and get into super user mode (su). You can do this via "adb shell" or with a terminal emulator app from the market.
At any rate, once you are super user, you do the follwonig (the # below is the prompt you should see if you are superuser. Everything after the # is what you type in).
#pm setInstallLocation 2
This will tell android to try to install most apps externally (i.e to the SD card).
Once you do this, you can go into the settings->manage app screen and you will notice many more apps can now be moved to the SD card. Also, apps will go there by default (unless the app manifest does not allow it as it doesn't with apps that need to load at boot time).
I've got 22 apps installed and still have 60+ mb of free space.
Also, one other trick I've done - apps that gets updates like google maps and google search take up space in both system/app and data/app. When you get a message complaining of a free space issue, it is because the data partition is filling up. So, for those google apps that come preinstalled on your phone and have updates, rather than deletnig the updates, you can move them from "/data/app" to "/system/app", overwriting the app that is already there.
For example, in "/system/app" you will find Maps.apk. You will also find a file in "/data/app" called something like com.android.google.maps-1.apk. You can rename that Maps.apk and overwrite the version in /system/app, and then delete it from /data/app. That will also free up some space, and you will still have the benefit of using the most up to date google apps.
You can also move programs you always use (like a custom launcher) from data to system partition. The benefit is extra space, the downside is you need to manually recopy it from data to system each time it is updated.
Just a few tricks that have allowed me to push the replenish to the limit.