no way I would ever pay $116 a month for a phone. any phone. that is more than I pay for internet access.
It is not some static home internet connection. It is mobile, phone and data. The 2 can't be directly compared.
To the OP. I love my iPhone. Not only is it a great iPod it is also a pretty good phone and the apps I can use on it rock. I have apps that do all of the following. (I am an IT Manager)
RDP client to connect to windows machines remotly
SSH client to connect to Unix/Linux Machines remotly
VNC app for remotly controlling Mac machines
A couple nice games
Ambience (app for white noice and other relaxing sounds)
A couple warcraft apps for access to stored character profiles from armory data
Custom weather apps
Custom movie apps
Shazam (app for identifying a song just by having your phone listen to it for 5-10 seconds)
App for managing my netflix que
Remote app for controling my itunes on my desktop and laptop
Ebay app
AIM app
Most of the above are free.