I'm not sure how it works on Android but contact info gets synced on iPhone as well. The problem in the pitch is non-existant because when you upgrade to a new iPhone, you can restore contact data. Alternatively, if you move off the iPhone, the address book keeps a copy on your computer as well.

This is very different than your response here, which is less about losing contact info, more about always having an up to date source. Personally, I can only speak for myself but I don't see this as big of a problem.

I do acknowledge I've seen people post losing contact info (for whatever reason) at least once or twice on my time on facebook but of course thats not representative of how big the space is. However I'm not sure if this problem is big enough of an issue (just my two cents).