I've always wanted a HTC android phone for so long.
At first, I was thinking about getting the HTC Tattoo, but after seeing review about Tattoo resolution restriction, I decided to get the HTC Magic.
£60 upgrade for £20 a month (12m contract) is a steal! - 600 mins + unlimited text + unlimited internet
You Get GPS, Wifi, 3G, HSDPA, Camera, an micro SD Card.
If you managed to upgrade HTC Magic to Android 1.6 Rom with a bit of help in Youtube, this phone is even better. You can download even more apps with Android 1.6 instead of 1.5 that comes with the phone.
Amazingly, if you fancy a bit DIY, you can upgrade this phone with a HTC Hero Rom. The HTC Hero Rom runs very smoothly on the HTC Magic phone with a decent class 6 micro SD Card.
Get this phone while you can, Vodafone doesn't seem to stock them any more.