XCD35 isn't VFM. what you basically get is a bigger screen & a bit higher resolution. but a slow processor, 256Mb ram, Android 2.1, a low rating battery. these can't be replaced & so best to go with O1 for now.
PS: i remember reading optimus one's review @ GSMArena where they stated that O1 is late to party. but till now no other mobile have been able to replace O1 as most VFM Android @ 10k.