Modern etiquette question: How do you answer the phone?

I know we usually answered the phone “Hello” – not knowing who was on the other end. Nowadays, if you have caller ID you already know who is calling before you pick up. I tend to answer some friends’ (and particularly one) calls with a very warm hello, yet they still seem compelled to identify themselves. If I say “Hello, Steve” for example, they don’t always hear it (even if they are Steve.) I have the same dilemma if I am the caller. It’s a little awkward. Anyone else have this problem? Any solutions?