I find it comical that you think we the consumer only pay $199 for the iPhone. Are you forgetting that you signed up for a 2 year agreement? Don't worry, by the time 2 years is up, you will have payed much more than $199. Ignorance is bliss I guess.
Actually you are wrong. We all paid just $199 for our 16gb iPhone 4's. My monthly bill from AT&T is for voice, text and data service. In my opinion it would be comical for someone to add the monthly cost of their phone service to the cost of the phone itself.