So, Tianna was kind enough to do the research I should have done and pointed me to the info page on the Even More Plus plans. Looks like you do not need a contract for a $79.99 plan with unlimited minutes, texts, and data. A 500 minutes Even More Plus plan is $59.99 (which gives you the equivalent of what comes along with the subsidized Nexus One). The math turns out to be:
- $529 unsubsidized phone + $59.99 plan x 24 months = $1968.76
- $179 subsidized phone + $79.99 plan x 24 months = $2098.76
- Difference = $130
There is an incentive to getting the unsubsidized phone. Kudos to T-Mobile for doing something cool (Do the other carries have something similar??) and I suppose also for making me look like an idiot!