ok after extensive googling, it turns out this is a "feature" of HTC and there is no way to hide sim contacts in the dialler unless you delete them, which i,m not too sure about. what if my phone crashes or i break it and i need to use my old phone which wont sync to google?
is there a way to copy all contacts to pc as v files? would this work as a backup?
Thanks again all!
If you export them to your sd card and then copy that vcf file to your PC you'll have a full backup. You can also export the transferred contacts from gmail and save them with the extended information as a csv file. Either way you'd have multiple backups.