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Completely agree. I'd like to know how much they really need to actually sell these things for. iPod Touches go for, what, $500 less than an unlocked phone? This sucks. I'd love to have a 3G Android phone on ATT as well as my iPhone, just to develop on an try out, but the market makes this impossible.

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Is there a reason not to buy a subsidized phone and just eat the termination fee immediately? (I'm assuming it's ~$200, but might be different for smartphones)

IIRC, the termination fee brings you up to the cost of the unsubsidized device.

Ah, thanks for the clarification. I was under the impression that the early termination fee was less than the difference, so that the black market value for an unsubsidized phone would be a good bit better than the official one.

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