So you're paying £360 more over the course of a two year contract?
Remember though, if you buy a 16GB iPhone on your contract you only paid £89 for the handset. On the Simplicity tariff, you'd pay £449 for it. That works out exactly the same price.
You're essentially spreading the cost of the handset over two years.
Yeah, I guess! The only reason I complain about the £35/month is that I use about 200 texts and about 10 minutes out of my 600 minutes and 500 texts, so I could be paying a hell of a lot less per month!
But then, like you say, I'd be paying more upfront for the phone.