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google vs phone

just got my eris the other day and liking it a lot. one question i have is there a benefit when you add contacts to use either google or phone as the setting. from what i see google backs up on the gmail contacts and the phone does not. is this correct. any other things. is there a way to have it list by the last name first instead of first?
 
First thing last:

I don't know how to re-sort your contacts list without redoing all the info in Last, First format, and that might not even work.

Contacts that are set as "phone" will not sync to your Google address book. This could be useful for privacy reasons, I suppose, but I prefer to have all my contacts be Googleized simply for backup purposes.
 
You can set it to list last name first by scrolling down where you enter the name. First name is on the first line, last name is on the second line. If you press on either one and move your finger up, you will see where you can change the way the name will show up in your phone book.
 
PLEASE HELP!!! when i try adding a new contact, the only contact type available is "phone". why am i not getting the google option?
 
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