Actual Cost
I'm going to wait until UK store opens with UK price.
All the networks do data/calls/text SIM only "contracts" for £20 per month plus or minus a small amount. Buy outright plus SIM only is how I've done things for years as it is a far better deal and gives you ultimate flexibility.
I also think it's quite funny hearing people moan about how long they are still tied into their iPhone contract. The iPhone is a cutting edge device, is being updated all the time, there are some obvious weaknesses with it which are slowly being addressed so why would anyone want to lock themselves in for two years?! I'm on my third since it came out and have spent far less than any contract despite forking out hundreds (which you get back on eBay)