Just to add a little information.
As was mentioned in an earlier post, dev phones have the ability to bypass the gmail authentication process. You can also get this benefit from rooting your phone using one of the many ROM's that are available (I can't recommend cyanogenmod enough!). This also gives you the benefit of being able to use the very powerful apps out there(such as task killer and wifi tethering), not to mention actually making the system perform much faster.
Also, as mentioned in an earlier post, android does possess the ability to turn off syncing with google altogether. This is especially easy to perform with one of the many toggle apps out there, especially with the donut widgit that is built into the cyanogen ROM.
As for syncing your contacts from Outlook, I have not tried it (I don't use Windows), but there is supposedly a PC Suite available from HTC (says that it's for the Magic, but I believe it would work for most of the currently available Android devices...ymmv) that looks like it should work: HTC Sync Upgrade for HTC Magic
As you mention, there are other shortcomings (lack of folders in bookmarks is a big one), but overall, this is a great phone, and it can be completely severed from our Google overlords with a little bit of work and research.
Thanks for the info .. it look like rooting might be the only option... unfortunately the htc software will not recognize US based Tmobile Mytouch phones. I've tried it and spoken to their support people. Something Tmobile did in conjunction with Google i assume has restricted this function.
-sun