Pros: durable, good camera, good sound, great reception
Cons: music player complicated, internet annoying, headset/headphones suck.
I've had this phone for two years now and have loved it, once I accepted it's limitations. I'm about to switch up to an iPhone 3G, but I will miss some features of my old candy-bar buddy.
My main reasons for buying this phone were Sony-Ericcson's record of quality phones and the fact that my wife had taken over my Canon digital camera for her work. With young children I wanted to have a good-quality camera at the ready for all those photo opportunites. I didn't care much about the music player, as I had an iPod that took care of that better than any phone at the time could.
I have never had a problem with sound or reception, and I live in a rather dodgy area for reception at times. Good, loud speaker and my Plantronics bluetooth headset has never had a problem. The included options for headsets and headphones suck - having to plug an adapter into the charger port is a pain in the you-know-what.
The phone is tough. I have dropped in on all variety of surfaces, left it on top of my car and driven off, and have both a three year-old and six month-old who are fascinated by it (it is apparently chewable). I have a small scratch on the screen, and some rough edges on the corners from hits, but that is it. Impressive.
I'm looking forward to having internet capabilities that aren't clipped and limited to a tiny screen.
I'm still going to keep this phone as a back-up and a camera.
Even at two years old, I'd recommend it if you just need a good phone with a camera.