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Seems endemic to VoIP in general, and with this phone in particular.
I started with Talkatone on the iPad. Has some echo, but not terrible. Moved to the alpha-testing Talkatone for Android on the Exhibit II, and at this point all my 'victims' report significant echo on their end.
Tried muting the mic with my hand and the echo diminished a bit but not completely. The workaround is to use earphones. The echo goes away entirely.
That tells me two things:
a) The echo is acoustic, through the body of the phone. With a mic in such close proximity to a speaker, this is no surprise. Physical isolation in such a small unit while preserving audibility would be nearly impossible.
AND
b) that's why typical cellphone communication sounds non-duplexed. Clearly, the makers of the phone soft/firmware account for it by muting one side or the other depending on when you're talking. If you're not talking, your phone's OS is muting the mic. If you are talking, your phone's OS is muting the earpiece.
So I guess once Talkatone, GrooveIP, et al get the basic VoIP comm circuit working right, their next area of effort will be to work on the conditional muting.