Idiot. No debate.
It even has this android facility where you can track your phone when it is lost/stolen, regardless of whether the sim card or operator have been changed.
Through the web, you can take photos of the thief, get the last 10 SMS sent/received by the phone (sent to your gmail address), set a screaming siren (regardless of whether it is in silent mode or not), notify the thief that the gadget has been stolen. You can at worst clear the phone and SD card of all info. And it is all free.
Go to
http://www.androidlost.com to register (for free).