Gizmodo did a comparison between the cost of the iPhone 3G, the iPhone 2G and a handful of other similar smart phones. I completely agree with their conclusion that the $160 extra over 2 years is well worth the extra speed and capabilities of the 3G iPhone, and that it is pretty much on-par with its competitors. I'm sick of hearing people complain. Yes, I know there are Sprint plans like the Sero for cheaper, but in general it's not just the iPhone that is a rip-off, its everyPhone.
http://gizmodo.com/5015540/iphone-3gs-true-price-compared
http://gizmodo.com/5015540/iphone-3gs-true-price-compared
Over two years, the iPhone 3G will cost $160 more over the original iPhone. This includes the unlimited data plan plus the additional $5 SMS plan you need to get to match the original's 200 included messages. What the chart doesn't indicate, in pure dollars, is how much 3G is worth.
Compared to a similar 3G phone on AT&T, the iPhone 3G costs exactly the same over two years as AT&T's HTC Tilt (minus $100 for the increased initial phone price). Compared to Sprint, you're coming out slightly behind by $20 because of Sprint's included unlimited SMS/MMS, but unlimited 3G data still costs the same $30. Verizon's data and texting plan is also on par with AT&T's, and you get an extra 50 text messages.