We all have I-phones at our house. I have the oldest model that came out about a year and a half ago...LOVE IT...NO complaints.
Hubby got a much better faster version in May of this year and LOVES it.
Daughter has the newest version (thanks to someone whole stole her 1 1/2 yr old Iphone last week) and LOVES it. Her Iphone is the best one, has video on it as well.
From my experience last week, I could have replaced her same phone for $149, upgraded 1 level Iphone for $199 or get the newest at $299. We went ahead with the newest so she would be up to date with technology. The prices quoted to me were good IF I continued a 2 yr contract with ATT. That was no issue since we've used ATT for YEARS.
Hubby's phone and minute plan runs about $170 a month. He has a lot more minutes. You do pay about $30 extra a month for the data coverage.
Daughter is tagged onto my plan. I pay about $180 a month for unlimited texting (gotta have it with a teen...she does 3000+/month) Keep in mind that $60 of that is for the data packages on both phones, $30 is unlimited texting.
Overall, we like the Iphone, ATT. We did get the warranty on daughters for $70 that extends the 1 yr. IF it is stolen again, we can get an identical one at the price we paid $299 vs the retail rate.
Also, when I travel, I no longer carry my laptop...I rely on my Iphone and I love that feature.
Good luck...I am sure there are cheaper plans with the Iphones out there. We just have what works for us.
Enjoy!