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The Imagio actually feels high-end enough to justify Snapdragon power, but alas, it's still stuck on the same old 528MHz MSM7600 core -- part of a family of aging processors that has powered many WinMo and Android devices of the past couple years. What this means for you is that you're going to experience some lag navigating through some TouchFLO and stock WinMo 6.5 user elements and web browsing won't be quite as snappy as you'd like (alas, there's no such thing as "fast enough" mobile browsing, is there?), but generally speaking, it's never unbearably slow. We're also not a huge fan of the Imagio's physical buttons below the screen -- though they're separated, they've actually got virtually no feel, so it can be tricky to tease out whether your finger's currently on a button (and if so, which one) without glancing down. Of course, we attribute that to rookie jitters -- we suppose you'd have them memorized within a few days of actually using the phone full-time.
By design, the overall software experience here is virtually identical to that on the Pure, so it really comes down to hardware and carrier; in our opinion, the 3.5mm jack alone is worth the extra $50 that you'll pay for the Imagio, and you won't find many people arguing that Verizon's network sucks compared to AT&T's -- especially when you consider that you've got EDGE / HSDPA in there for global use. Add in the better, more substantial feel to the device, the larger screen, and the trick FLO tuner, and Verizon's entry wins the head-to-head battle here pretty handily; sure, it's still WinMo, but at least it's sucking on some very competitive hardware.
*Verizon has acquired AOL, Engadget's parent company. However, Engadget maintains full editorial control, and Verizon will have to pry it from our cold, dead hands.