That's a shame 1xRTT is actually a wonderful thing (as long as it doesn't enter into domestic strife with your PDA). It's one of the many techie names for the Verizon Express Network service. This is a data service that's capable of between 60 to 90k average data throughput (faster than a 56k modem). I use the AirCard 555 from Verizon, and it can fall back to 'standard' mode when no high speed (1xRTT) network is available, or because I just want to dial up my ISP rather than using Verizon for my ISP.
Generally, phones and comms devices that run on the 1xRTT network should come with data solutions for laptops and PDAs, though it seems right now, the Moto phones come with an optional data cable for notebook connections, but not PDAs. That doesn't mean it isn't possible to use a PDA with the 1xRTT network (I use the AirCard with an iPAQ). However, to use this service, you would have to switch over to the Express Network plan (not cheap) and find a phone for which there is an available PDA cable.
It seems that either pinout or resistors have changed on the 120e, or there is indeed a settings bug on the phone.