Developing a dedicated BTC sim card had not occurred to me... it would solve all the issues I mentioned.
You would still need to have an office but all they would do would be issuing the cards and taking a small fee for converting the sms into a btc tx.
The card would have inbuilt storage of BTC addresses and aid in sending the "Send BTC" sms and displaying my balance/addresses.
Addresses and keys would be in the phone itself which makes it a lot safer.
You would still have the same cost of a smartcard though as I'm sure they practically are/cost the same.
Still - it avoids some of the smartcard issues (occasional need for an internet bar and "expensive" android POS receiver terminals).
I think both systems could enhance bitcoin together as a SIM user could still pay a smartcard merchant and a smartcard user could with little trouble pay a SIM user.
Perhaps you or someone else should create a new thread dedicated to developing such an "Encapsulated thin BTC client SIM card" as we have arrived at here.