It ships with Android 1.6 – that's pretty old. An upgrade is planned but it will probably need to come from Dell. The sony ericsson X10 looks better to me to be honest but then its all about the camera for me.
Although as I work for Dell, but not in the area that this phone is developed and supported, I can see the internal support sites. The pictures on the internal sites make it look less of a brick than the external pictures. I have not seen one in real life but I don't think its that huge…
Also, strangely, there has been zero internal fuss about this. Normally we get told all about new products just before release to sale…