1 - You're missing something. If I go to Messaging -> New message, and as you say the cursor is in the To box, so I start typing a name, by the time I've typed the first two characters of the name it's offering suggestions. I take it you do have some contacts? Also some phones sort contacts by last name then first name. Android sorts by first name so you start typing the first letters of their first name. If this doesn't work, then I don't know what's up.
2 - There are a number of quick ways to search for contacts to call/text. The way I do it is to go to Contacts (you can put a shortcut on your home screen if you want, or press the dial button and hit the Contacts tab). Once there just start typing any first or last name, and it'll narrow it down to the list of contacts that contain what you've typed. Another way is to add the Search widget to your home screen, and just start typing a contact like before. When it suggests it you press it. A final way is to download the app Any Cut from the Market and make a shortcut to your commonly used Contacts on your home screen.
3 - There are a number of apps that can do this. SMS Popup and Handcent SMS both offer features like this. Try Handcent first.
4 - This depends on the app. A lot of apps (in fact most games in my experience) save their state before switching to the call. Sure, sometimes you might go back to your last turn or whatever, but this is up to the developer as to how this works.
5 - Again, it depends how the app's developer made their app as to what happens when you switch between two apps. Some apps exit, some remain in the exact same state, some go back to the start of the level. The long press of the Home button is the standard way to switch between the last 6 *recently used* apps (it's technically not running apps). You can also use apps like Advanced Task Manager to switch between running apps. But, as you've noticed, a lot of apps save and exit rather than actually switch.
Video - Not sure... Maybe there's an app that can do that, but I've not seen one... but then I haven't looked.
Iteration is pretty cool yeah. Alas I've not looked for any apps like what you describe - maybe someone else can help there?
Face buttons - not that I know of, sorry.

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