I purchased a 32gb unlocked at the Apple Store ($749) and activated it on the $30 T-Mobile prepaid plan, it is a Walmart or Web exclusive. I called customer service when porting and they let me use that plan without having to go to walmart and find an activation kit, not to be confused with their $30 1500 minutes or Texts plan.
100 minutes
Unlimited Messaging
Unlimited Data (throttled when you hit 5GB, it's throttled at 100mb if you go on the $50/month plan)
The minutes don't affect me because I use Talkatone with my GoogleVoice number. The 3G in my area is good enough to route the call as data and I am near wifi a majority of the time. So 90% of the time I am never using the minutes included, I believe I used 9 out of my last month. The EDGE speeds are reasonable for light web browsing when I am not in 3g areas.
My friend pays over $70+ easily so in less than 10 months the phone pays for itself compared to going with a subsidized phone ( $299) and 2 year contract/extension.
Agreed - it is basically the cost of an iPad for the same memory size. That is pretty steep. You can get an $850 iPhone 5 64GB or an $830 iPad with Cellular ($700 with just WiFi) Heck I would almost get the iPad Mini for $659 - call it the Apple Universe Jott 1 -> stick a bluetooth on it and use it with some VOIP app.
Yeah, it is a small punch in the gut when you first get it. Your idea is great and one that crossed my mind while at the store but the iPad mini just didn't fit completely in my pocket or I would have gone that route. My idea was iPad mini + iPod touch 5th gen but just broke down and got the phone and am now happy.