I'm saying that some letters have more contacts than others. Some people have huge contact lists. I personally don't, but still I like to sort by categories, I have business contacts, personal contacts, recreational contacts, family contacts etc. Some options for the user would be nice. Apologist arguing like yours is against the consumer's interest, why is it a good thing to have no way to sort beyond letter? You think less is more in every instance? Why are you defending this?
One question (and this would make Apple's implementation easier to live with): does the iPhone find a contact when you select 'M' for example based on first, last, and company? If so this is a little better. Sometimes I may forget the contact's name I need to call but remember their company. Does it do this? It would be better of course to be able to see all the contacts that belong to a certain group/organization though, so you can email easier, or place a conference call.