The subsidy rate is the same regardless of which phone you get on AT&T/vz. This means the logical course of action is to choose the phone that gives you the most backend subsidy amount, which happens to be the iPhones. Apple gets paid handsomely and a lot more than android makers. Therefore the best deal is an iPhone.

The argument you SHOULD have made is "tmobile lets you sign up without a contract at a discount without subsidy baked in".

Now, on a more "touchy feely" note, I owned 4 android phones (moto blur you sucked!), but they have all been crappy in comparison. Hardware build quality, software quality, general "polish" etc... My 4s has been better in every single way. Oh and my personal data on the phone more secure to boot! (iPhone's hardware encryption is VERY good) Life is too short to worry about saving $200 every 2 years, fuck that shit and go with the better device.

Being frugal is a fine trait, but it can be "cant see the forest for the trees". Don't pull the fucking poor card on me, I came from extremely modest background... And even when I was poor I knew the value in buying, well, VALUE.