I can certainly see avoiding apps2sd for fear of all this possible mayhem.
The problem with the Hero is the severely limited on board mem. When you start running out (even before you get the low memory notification) the whole device starts to hurt in a very bad way. To the point where it won't even notify you of text messages and phone calls.
I've been running Fresh 2.1.1 for a couple months without apps2sd enabled. It was great at first, but as I started running out of memory things slowed down and I started having all kinds of problems with the thing just refusing to do the simplest tasks. I kept getting the low mem notification and I'd remove some apps, clear caches all the time and before long I'd get the notification again.
About two weeks ago I took the time to back up my half full 16gig sd card (mostly music I didn't want to have to move; hence not enabling apps2sd before) and format it with the partition.
It's been like a new phone. I went from 14mb free in mem to 40 and it's running like new.
Point is, for all the pitfalls of apps2sd, I think it's a necessary evil for the Hero. A phone that most people who care to go to such lengths, will abandon before a card of any quality can fail.
Just my opinion.
Agreed, this phone is severely crippled in internal memory, much like my old WinMo phone (which btw has been installing apps to SD natively (i.e. w/o hack) since WinMo 5 and maybe before, go figure). 6 years later and that SD card is still alive and kicking, serving apps from the SD card on that SDA. With Titanium on the Hero, as others suggested, the only possible risk is *maybe not being able to use your phone, WHILE traveling, IF the SD fails, and IF one has no computer available to run restore*... that is a lot of what if variables to a low risk scenario versus the very common problem of the Hero being absolutely anorexic in terms of internal memory storage space.
In other news, I'm glad Froyo has finally caught up with another antiquated MobileOS 5 years ago and highly encourage anyone (inc. myself) to use app2sd.
For backup (in realistic 'emergency', I hope wouldn't need to rely on this phone anyway (e.g. occasional slow dialer, FC, seldom but nonethless more likely than SD failure random reboot, less intuitive process than straight DTMF-esque dumphone hw keybad etc.). I'm not ragging on the this phoen per se, love it, but the more smart features that get incorporated into today's phones, the more they suck for no frills 9-11 access, IMO. That's why I have a Moto RAZR v3 w/ dumb proof large keys available for such tasks, in the glove box on the ready. Amazing how long it's battery lasts and how fast it boots from cold start... guess we can't have progression, w/o a bit of regression.