There are literally NO vendors who send software updates through SMS. Also, anyone running an SMS from an unknown source, without knowing what it is... I won't say they deserve their fate, but this probably isn't the first time they've been phished into an issue with a computing device.
Poke -- why do you have such a strong Windows Mobile agenda here? The first "savior" phone had a small bug, i.e. wireless data didn't work right which is sort of important for a smartphone. So they're making it free on contract. Not bothering to bring that up are you?