I have been paying high unsubsidized prices for years because I like to use Nokia and HTC phones that never seem to make it to my carrier and I buy too many phones to get carrier subsidization anyways. I just spent my $500 on the Nokia N900 and personally find that Maemo 5 device to be more compelling than another updated Google Android device. My T-Mobile G1 serves just fine as my Android device and it has a very good QWERTY keyboard too. This unsubsidized price is the same that we have also seen across all carriers for years, just go look at the price for your favorite smartphone with the unsubsidized, no-contract option.
So please, tell me again why this is such a groundbreaking phone? There is a Google Android event next week on 5 January and if the official announcement of what has already been revealed is all that is announced it really is a non-event. Google has the capability to shake up the wireless world with offers such as a free ad-supported phone, phone like this with free service (paid for by ads), or data only phone with calls powered via VoIP. Let's see what comes from Google next week.