I have the Droid Incredible by HTC. I really like it and suggest it as it's got the best mix of the phones IMHO. 3.7 inch screen IIRC. 8gb of internal memory, android 2.2, 1ghz processor just like the Droid X without the X's size. Blazing fast as well.
And don't go by what verizon says they can be upgraded to on SD cards. I had a 32gb micro SD and it worked perfectly even though verizon says it only supports up to 16gb