"The question is: Why anyone buy a nuvifone?"

"nuvifone can't compete with smartphone and if one does not need a data plan, they will buy a PND"

Your syllogism doesn't work for me, and surely there are more consumers like me. I would buy a Nuvifone because I need portable GPS and I need a portable telephone. I need more than a PND, but I don't need a data plan, just a voice plan; I have no use for portable web surfing, e-mail, or "apps." Clearly, I have no need for a smartphone, but it's nice to know that Nuviphone can do smartphone stuff, if there's ever a requirement.

I haven't bought Nuvifone yet, because it's not compatible with Verizon's superior US coverage via CDMA. I won't buy Droid because the maps will be inferior in USA and not available in Europe. Furthermore, the telephone functionality on Droid will not work with Euro GSM.

I don't think there's widespread understanding that "free nav app" is just another baby step in the rollout of personal navigation to mass consumerism. There are a bazillion smartphone commercials competing on TV, but no device has yet been brought to market which converges telephony and navigation across North America, Europe, and Asia. I think Garmin/Asus will get there first. Nokia ought not to be far behind.