And I didn't like the 2 year mandatory agreement with AT&T. If they would have offered me a one year plan with a lower monthly rate for everything say in the range of $100, I would have kept it.
Most phones require a 2 year contract. IMO, knocking the iPhone for that is unfair.
My bill (450 minutes, data plan) is around $80/month. It's a little more if I get text messages from friends. It's not cheap, but it's not a $100/month either.
To this day, I don't regret getting my iPhone. Before I bought it, I simply wanted an iPod and smartphone. When I heard about the iPhone, I was entranced because here was the answer to what I wanted.
After Apple's various updates, it's proven to be even more indispensable. For example, I get lost easily. So, I use the locator on google maps to check where I am and use the map app to remedy the situation.
Also, using the browser is really easy. People who own blackberry or some other phone are asking me to google things on my phone. I once asked why. Essentially, the answer was because my phone made browsing simple.
I could go on about why I love this phone, but ymmv. If you know someone with an iPhone, ask if you can type with it, browse, etc. The typing is probably the biggest issue. Unfortunately, it also requires practice to get the best speed. If you can't deal with a virtual keyboard, the iPhone is not for you.
Hope this helps.