Come on HTC, do you think we're actually retarded or something? this is highly remniscent of the Rockstar Games debacle where they initially tried to claim that the sex scenes had been inserted by code hackers... except the problem is HTC have actually humiliated themselves big style since it's pretty dire if the PR team calls one of the engineers and says "does this have an imageon chip?" and then spins that into this story... you see:
If we want to get technical... they're not strictly lying, since it doesn't literally contain the ATI chip... but what it does contain has all the same features and abilities (and then some) of the Imageon... so they're still coming in the cocoa.
The MSM7200 actually is an ARMv6 chip, which supports things like SIMD instructions, and also the rather fancy "Jazelle" that does fancy stuff with Java (though we maintain that you simply can't polish a turd).
In any case... the capabilities of this for direct image processing (and all the other fancy 3D crap you care to think of) can be utilised by this chip quite beautifully... it just seems HTC want to play the anal retention game.