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I know HTC improved the speed of the Hero, but it still looks choppy compared to the iPhone, scrolling on the iPhone looks so much smoother, why is this?
PS. Yes I do use a task manager

Also, the iPhone has been pretty smooth from the start though tbh.
This is true. It's not like the iPhone just got good with the 3GS model. Having had "three years" to work on the iPhone doesn't have anything to do with how well it's UI is done, or how fast it is. Proper memory and open app management does.

Also, the Hero can run a number of apps at the same time.
The iSheep was far from perfect in its first TWO incarnations. Not being able to forward text messages or receive picture messages for example.
Two very basic elements of the vast majority of other mobiles that were lacking.
Also, the Hero can run a number of apps at the same time.
And it's got a chin.....well in some parts of the world.
And it's called a Hero.
And it's ace.
So there!
Chegs.
The first two iPhone generations were considerably slower than the 3GS especially when opening and closing applications (I read it in an Apple forum). This is why lots of existing iPhone users are upgrading to the 3GS.
To the OP: I cant say that I have noticed any lag since rooting, maybe you should try that.