My point is that the amount you pay each month on an 'old plan' likely includes a 1/24 or 1/18 cost of the phone itself and if you switched to a new plan you'd see your monthly cost drop, but you would have to purchase a phone. At the end of the day most people are in the same net position because they're paying less each month for their service but they now incur a distinct monthly hardware cost.
The only thing I was correcting is that the carriers have never subsided the phones. That's what they wanted you to believe, but they don't make money by taking a $500 hit on every phone they hand out!!!