IBNeko's Journal-Nyo~!

Meh. Here's a phone where Buying w/ a plan, then canceling service to keep the phone is Just Not Worth It.

If you do not wish to keep the wireless plan, it is your responsibility to contact the carrier to cancel your wireless plan account. You should contact the carrier directly regarding any activation fees, monthly usage costs, taxes, and/or early termination fees that may be owed.

You agree to pay Google an equipment subsidy recovery fee (the "Equipment Recovery Fee") equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service. The Equipment Recovery Fee is equal to the line item in your confirmation email setting forth the discount on the full priced Nexus handheld device related to your carrier service plan activiation. You authorize Google to charge the Equipment Recovery Fee directly to your credit card, or other payment method used to purchase the Nexus handheld device, upon cancellation of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below.

-http://www.google.com/phone/static/en_US-terms_of_sale.html (Google Terms of Sale)
Bold mine

And T-mobile has a $200 ETF (https://www.google.com/phone/static/en_US-tmobile_terms_conditions.html).

So if you buy with a plan, you pay $175 + $80/mo. Canceling would result in an addition $350+$200.

Google's (sneakily? smartly?) pushing people towards just buying it unlocked. Or not getting a plan. It's definitely not competing with iPhone prices though?