Is it theoretically possible to REPLACE the software that runs on a mobile phone with custom-written ones. I imagine it would open an entirely new market. For example my Nokia 6610 stores only last 10 numbers in the call register. When I save a number from call register to Contacts the number still shows up and I expected the Contact Name to show up instead. Also, I want to view call history grouped by number, Calls received from this number, when, Calls made to the number, when, etc. All this is the essential and basic functionality of the mobile phone and instead I find manufacturers are putting lots of useless junk that doesnt serve the purpose.
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In theory, yes, but in practice the phone companies and manufacturers have the software fixed and locked down to protect their own monetary interests.
To write your own firmware, you'd need a software development kit for your phone, plus a factory programming cable, both which the the manufacturer hold close.
You're in luck! http://code.google.com/android/