What I observed was that if you uncheck IMessage in Settings and check SMS you can text everyone I used to text even people without iPhone or iPad that have phone that allows texting. If you turn on iMessage and leave off SMS then you can iMessage those who have IPAD with IOS 5 but no one else, however if Imessaging is down then you can't text anyone. If you leave iMessage on and check SMS then you can send messages to all people with IPhone or iPad ios5 and when it is down then it reverts to simply SMS so you can text anyone when iMessage is down. I think this is right and would explain the multiple issues. Is this a correct observation?