1) App executables are saved in phone ROM; these are tiny.  Graphics and other high space useage items ARE saved on the SD Card.

2) I have 34 apps on my phone already, and still have 180 mb phone ROM left - Great!

3) You won't even have to be a 'techie' soon enough...this faux issue is being addressed already for Apps2SD so that Android is that way by default.

4)the iphone is susceptible to the same issue:

http://www.tuaw.com/2007/10/29/iphone-hacks-running-out-of-application-space-on-your-iphone-or/

Again...this is a NON-ISSUE