Alrighty, actually it wasn't anywhere near as painful as I expected. Here's what I did.
Disclaimer: I don't plan on using another phone that's not Android, but even if I do I can reverse all these steps to bring it back to the SIM. Also you need to have your Gmail account setup on your phone.
1. Go to 'People'
2. Hit Menu->Import/Export and choose Import from SIM card
3. Choose your Google Account
4. Hit Menu->'Select all'
5. Import your contacts. Note: It will take quite a while to sync the contacts with gmail depending on how many you have and how good your 3G/Wireless connection is. I'd give it 30 min to an Hour.
6. Once the sync is done verify your contacts are in your gmail account then go back into 'People', hit Menu->View.
7. Un-check everything except for SIM and hit done.
8. Hit Menu->Delete
9. Hit Menu->'Select All'(Verify that everything selected has the SIM icon next to it) then hit Delete
10. Once the Delete is done go back into 'People' hit Menu->View and put a check next to Google and hit Done.
There you have it, now all your contacts are hosted on Google and you won't have to worry about duplicates or importing contacts from a SIM again(as long as you have Android). I'm not quite sure if that's what you were looking for but it's wonderful to me
Edit: Also this way you can edit contacts in Gmail and have the changes sync to your phone, much easier than editing contacts on a phone.