With my contract expiring on AT&T I found myself in the market for a new cell phone. I could have waited for the next iPhone, by continuing month-to-month, but I really wanted to move to a 3G connection. With the announcement of the new iPhone OS only working on the 3GS, I had to spend $200 (and a 2 year contract) to get it. I'm not sure why with the threat of switching carriers that AT&T didn't have a better offer.
From my research and testing a few Droids owned by 3 friends, it seemed like a good alternative to the iPhone. In speaking directly with Verizon, they too could only offer me a $200 Droid with a 2 year contract, so it didn't offer anything better. Then in searching Amazon, I found that I could get it for $20 on a 2 year contract.
It's now been a few weeks, and I'm very happy with it. While the Droid has its own quirks, they're no worse than the iPhone quirks. There also is a promise to bring Flash to the Droid, which is a lot closer than Flash on iPhone, which I don't think we'll ever see. Further, I like the better service from Verizon -- yes AT&T Edge (2G) service was as bad as the claims about the 3G service.
So if you're in the market for a good, low cost smart phone, give the Droid a try.
Full disclosure: use this link below, and I'll get credit through the Amazon Marketplace.