many design flaws with the phone I do agree.
for me its good that the numeric keypad is gone, although this makes it harder to do emergency calls, which should be an oversight corrected on future models.
However I would have kept 4 smaller physical buttons around the main button (instead of those 2 sensors), those buttons would be used eg. to toggle speakerphone during calls like on nokias.
Power button at top of phone not side.
Led's at each side of phone for notifications.
Physical button for camera.
Certianly room for all these things.