Syncing Gmail contacts with iPhone

Oddly enough, setting up a new Gmail account on the iPhone using their default settings (settings > mail > new account > gmail) doesn't give you the option to sync your contacts as well. I found out how you can sync your mail, contacts and calendars from http://www.google.com/support/mobile/bin/answer.py?hl=en&answer=138740.
Instead of clicking Gmail, use Microsoft Exchange. Use your full email address for both the email and username. Leave domain blank. When you click "next" once, a new "server" field will appear. Use m.google.com.

A word about syncing contacts:
Syncing contacts is complicated. At first, my Mac's Address Book and iPhone's contacts were in sync. I updated contacts on my iPhone and cleared my Address Book to sync contacts for another iPhone. When I synced with my iPhone again, all my contacts were deleted! If you want to force iPhone contacts to override Address Book, try http://support.apple.com/kb/HT1692.