Experia
Joey
The phone is essentially Android 2.2. The only thing you might consider "crippled" would be the fact that you have to buy games through VCast Apps or Android Market, but you have to admit that it's stupid for Verizon to put it's first Sony and/or Ericsson on the network in over a decade, not to mention the first "Playstation" phone in the States, on it's network without getting a piece of the action. Verizon is already well situated to distribute the games via VCast Apps, whereas Sony is not.
Otherwise, I haven't seen anything to make me think this argument would even come up. As I said, that's a very 2007 thing to bring up.
Phone is snappy and the gaming controls work well on the pre-installed games. It is also pretty cool that SE made the gaming controller function outside of gaming like for copy/paste.
Actually if it was a straight up SE phone I would love it. I play video games....just not enough to warrant a dedicated phone/game system.