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You could so something in the middle. When the Galaxy Note 1 prices drop a bit (probably when the Galaxy Note 2 comes out soon), grab an unlocked GSM one and use with an SmartTalk with an AT&T GSM sim for $45/mo.
I get by on an old Optimus V on Virgin Mobile for $25/mo with 300 min/unl data/unl text (it's $35/mo now). Prepaid is where reasonably priced wireless for the non-phone-obsessed is at!
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