It's a niche device, people. This won't be a billion unit seller within the first week. Trust me, I'll bet all $10,000 of my school loans on that. But it should still sell decently with good marketing.
I use a prepaid and my total bill comes out to $33/month. 5-bars of reception via T-Mobile in SF, baby! No need for smartphone here! *knock on wood*
Seriously. My life these days is HECTIC. So much to do! $250 for a touchscreen device that can replace my aging Sony S639 isn't bad as long as I can use Google Calendar even when I'm away from my school's wifi.