I recently got my wife an iphone 3g for 99 cents (with a contract renewal sure, but she needs a provider anyway..)
I didn't think that was a ripoff- $700 would be another question entirely
How can people afford these wildly, outrageous phone bills! I know I can't.
It may be handy at times to be able to access all the goodies you can access with them, but that comes with a pretty steep price. I guess people are easily conditioned by modern technology. Once they get you hooked, watch out. . .