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Just wanted to chime in one more time and say thank you to Ken for personally replying to this thread and explaining the reasoning behind the change (One of the reasons why I chose to give my money to Omni over other GTD/task managers was the great support and personal attention I got for my questions during my free trail period).

I'll just say that jdh and I are very much aligned. My preference would be for a user-defined option on how things should be sorted on the iPhone app, but if that would add too much cost/complexity, then I much prefer the old way of sorting actions by due/flag (which feels much more in line with GTD teachings) within a context rather then by project. If someone has a need to sort by project, that person can always create a perspective to do that.