Again, $600 on the iPhone. You're going to have a phone for 2 years either way. Pay as you go to save money is just being pointlessly frugal, especially after spending so much on the phone to begin with.
Okay, you keep saying iPhone, but I think you mean iPhone 3G.
Because I paid $399 for my phone, which is the same price as those who signed a two year contract. But I didn't sign a contract.