I don't recognize that description at all. I've used waze quite intensively for about a month, mostly just in "viewing mode" while driving, but also for bulldozing new roads and for navigation to an address. So far I've only had one single crash.
I'm using HTC Desire with Android 2.2 now (2.1 the first weeks). Waze has been version 22.214.171.124 all the time (downloaded from the Market).
My biggest issue is the slow update of drives from the phone to cartouche, and from cartouche edits to live map and to phone (but that's off topic - sorry).
Area Manager of Åkersberga, Vaxholm & Hedemora, Sweden.
HTC Desire, Android 2.2, Waze 126.96.36.199