If you're not satisfied with App2SD, root your phone, partition the SD (512-1024 MB should be enough) and use Link2SD to transfer all files to that SD partition automatically, including cache.
But I agree this is an annoying problem on low-end phones, and it used to be in 2010 as well for HTC phones. Google really needs to force manufacturers to leave at least 1 GB of internal storage for apps, even for the lowest end of phones. I understand that would add to the cost, and would slow down Android's domination in the feature phone market, but there needs to be at least some standardization for the benefit of both developers and users alike.
So it went from 150-200 MB to 350 MB? That's still too low I believe. People shouldn't worry about their storage days into using their device. A lot of regular folks won't even know how to use App2SD. It's silly that at this point users still have to ask developers why their app is so big at 10 MB and why it isn't just 5 MB, or whatever. This really constrains developers, and it's not fair to them.
But I agree this is an annoying problem on low-end phones, and it used to be in 2010 as well for HTC phones. Google really needs to force manufacturers to leave at least 1 GB of internal storage for apps, even for the lowest end of phones. I understand that would add to the cost, and would slow down Android's domination in the feature phone market, but there needs to be at least some standardization for the benefit of both developers and users alike.