There are a lot of excellent MVNOs worth considering, that don't try to screw over customers and still allow you the benefits of access to a large cell network.

There are a lot of excellent MVNOs worth considering, that don't try to screw over customers and still allow you the benefits of access to a large cell network. Red Pocket, for example, is an AT&T MVNO oriented towards Asian-American customers, and they have a bunch of plans that are very inexpensive while still providing reasonable amounts of service. If I had not received a Galaxy Nexus for free at Google I/O, I would have likely purchased a device for $350 from Google and then activated it on Red Pocket or some other GSM MVNO. It's important to realize that often, prices like $600 for a smartphone are deliberately inflated for the sake of encouraging people to sign their money away on cell phone contracts. This is illustrated by the fact that the Galaxy Nexus, a relatively high-end device, is available absolutely unsubsidized, for $350.