@everybody - Samsung Fit S / L.G Optimus One / Dell XCD35 all have qualcomm MSM7227 chipset without any modification.
Screen Resolution of the above mobiles
Fit S - 320x240
Optimus 1 - 480x320
XCD 35 - 800x480
So, obviously the Fit S should be snappier than O1 which should be snappier than XCD 35. Wouldn't rendering so many pixels makes a difference in daily usage?
OP and others who are looking to buy mobile in this budget, check these videos out.
Edit: As you can see the below videos,
NOT ONLY the menu, settings, app drawer are slower in dell xcd 35 compared to L.G Optimus One which is slower compared to Samsung Galaxy Fit S
BUT ALSO the browser pinch zooming (especially the browser performance, even in scrolling) and other Application performances are slow - note: these can't be undone even after you change the launcher, or even custom ROMs (if saying otherwise, share the video link)
Snappier Samsung Galaxy Fit S
http://www.youtube.com/watch?v=Be7mkSX0jhI&hd=1
Snappy Optimus One
http://www.youtube.com/watch?v=OIWUeOL2KME&hd=1
http://www.youtube.com/watch?v=L5nVaMJ3IQw&hd=1
Not so snappy Dell XCD 35
http://www.youtube.com/watch?v=ZB6q6f33No0 (Android 2.1)
http://www.youtube.com/watch?v=2do6aXA0O0M&hd=1 (Cyanogenmod 7)
But as you can see from the above videos, DELL XCD 35 has a STUNNING display compared to the O1's good display compared to the Fit S's dull display.
Now it's upto the user to select the phone of his choice. Whether a device with GREAT display but sluggish performance (DELL XCD35)* or a GREAT performance with dull display (Fit S) or A BALANCED good display and good performance(O1).
BTW, even my friend is looking for a phone for 8-10k with requirements as 3g/5mp cam & little larger display. I've suggested him the following mobiles
6.6k - Spice mi 310(has LED flash),
9.5k - Fit S,
9k - O1,
9.5k XCD35,
12.6k - Wildfire S.