I've lived for long period in both the US and Europe with prepaid plans and contracts on both sides of the ocean...
Following this thread, I notice some important things going over people's heads because they only know one system or the other. Hopefully I can clear some of these things up-
In the US-
Yes, you pay for incoming calls and incoming SMS/texts, BUT it's not as bad as you think. Carriers offer packages of allowed minutes or "talk-time" (both incoming and outgoing), which are very reasonable. You just have to watch your minutes and not go over, and you can easily spend 8 hours on the phone for about $40/month. Also, the numbers are the same as land lines. This means that to call a cell in the US costs the same as calling a land line...this is relevant for those of you outside the US. What this means is, if you stay in your package, you can call anywhere in the US or Canada at no extra charge, just your "minutes". If it weren't for terrible international calling rates, there would be no need for a landline in the US.
"The Rest of the World"-
No, you don't pay for incoming anything-which is logical and better. On the other hand, the rates for calling a cell versus a land line are MUCH different. In Germany, for example, it's something like 3 cents versus 20 cents per minute. That's why people send so many more texts! Based on my knowledge, you can talk much more on a cell phone in the US than in Europe for the same price.
In summary-carriers all over the world generally suck for one reason or the other.