By default Froyo manages moving apps between internal storage and the SD card automatically. Normal users never have to see those (admittedly ugly) detail screens. Your complaint is like looking at the man page for vi in Terminal.app and concluding that Mac OS X is only usable by geeks.
But they'll be bitten by this. The Android team are clearly not smart enough to understand why people like the iPhone.
"One obvious downside of external application storage is that the software installed on the SD card will only be available when the card is mounted on the device. If you plug your phone into your computer and enable USB mass storage mode, for example, the software installed on the SD card will not be accessible. Due to this limitation, Google's developer documentation warns that long-running software like background services, live wallpapers, and widgets should not allow SD installation."
Can you imagine explaining this to end users? "Well, if you install to the SD card to get more storage, you can't use this app when your phone is plugged into your computer." This is just... stupid.
"Well, if you install to the SD card to get more storage, you can't use this app when your phone is plugged into your computer."
Plugged in is fine, it's only when the SD card is explicitly mounted as a USB drive that the apps are unavailable. Still mildly annoying, but not as annoying as the iPhone refusing to let you access its filesystem at all.
