I've got the HTC Magic, and it's a fantastic phone. I would seriously look at it.
It looks beautiful, both the form factor and the software
It multi tasks, so you can have some very useful/cool apps running in the background.
It's Android, and there are set to be 18-20 Android phones on the market by the end of the year, which means great interoperability with other people.
The keyboard is brilliant.
I've been using it and it's not at all buggy - quite the opposite. Everything just works. I entered my gmail credentials at when I bought it and instantly have all my contacts, calendar, and mail. Wifi, 3G/HSDPA, GPS, etc just work.
It comes with a 2G MicroSD card. Of course, you can put in whatever size you want. I think they go up to 16G at the moment, but there will be bigger and bigger onces available, so you can grow with technology.
The only drawback it that the Android Market is not yet available in SA, but it will be soon. Once we have the Market, then there are amazing apps. i've just been using Wikitude, and it's mind blowing.