Nope, the Imagio didn't chop or drop words for us in a month of use in the Dallas area. That might have something to do with Verizon's network in their area (generally San Fran which is a bear of a place for cellular reception).
Texting is separate from the data plan, though Verizon may offer some kind of bundle.
Personally, I think the Imagio is very cool looking and the patterns and textures make it look less plasticky and more expensive. I wouldn't call the Incredible masculine, at least not as masculine as the Moto Droid.