Are We Idiots for Not Having Prepaid Phones?

Brian Chen over at the NY Times has an interesting post about prepaid phone plans, and how, on average, they're cheaper than the more common 2-year contract from AT&T, Sprint, Verizon or T-Mobile. But the catch is that you have to pay full price for a handset up front, which is almost always more expensive.

Is the immediate benefit of not having to pay full price for a smartphone worth the added cost in the end? [NY Times]