I think you're being a bit too hasty with your decision here. Don't get me wrong, I couldn't care less if you return it, but of what you mentioned, GPS is the only real issue.
just sayin...
*disclaimer* No, I do NOT work for Samsung. Stuff just seems to get blown out of proportion.
I agree with a few things you said, but on the whole 16GB thing he is right. You can only store apps on the 1.6whatever GB phone memory.