Some people still have trouble grasping the concept of unsubsidized phones. This phone is NOT primarily for the US. It's for countries where people have to pay for their phones up front, they don't have the cost of the phone spread out over 2 years like we do. It's also for countries who can't afford to drop $800 on a phone.
So you can "plastic, yuck" as much as you want but this is a smart move by Apple. This phone is not being made for you. It's being made for the billions of people in the world, including China, who can't afford the up-front cost of a $600+ phone. In the long run Apple would be STUPID to not go after that market now.
I agree with your statement, and also would add that who in their right mind would pay that much for a phone anyway? $800 for a smartphone that will be out of date in 1-2 years at the pace electronics keep moving? If the US was to ever do what other markets do, I would sever the use of my smartphone to basic calls, some texts, and nothing else. I could never justify the cost, especially that other places have Data and Voice Plans that are not cheap. Look at what you get in EU for the cost even if you have your own phone, it is not what you get in the US, so if AT&T ever goes the way T-Mobile is, I will cut my usage and keep my device for 2-3 years if not more if I can.