Decided to see for myself if the concerns over the apparent Desire's limited graphics rendering capabilities were true. Turns out they're not. Unplayable due to lack of keyboard - However seems to run as well on most levels with the exception thus far as tested being the intro level. My guess is the reflective pillar right in front of the spawn location is causing problems for the GPU.
Set at: Video Mode: 640 x 480 Colour depth: Default Lighting: Lightmap Geometric Detail: High Texture Detail: Full Texture Quality: Default Texture Filter: Trilinear
Phone details: Stock HTC Desire model A8181 running Android 2.2 (Froyo) with HTC Sense