Doing a little math...

. $499 for the 4GB iPod
. . $40 x 12 for Cingular's cheapest voice plan for a year (mandatory
. . $20 x 12 for Cingular's unlimited* data plan for a year (mandatory)
+____
$1219 for your first year with an iPhone...ouch. Add in another year of mandatory service (unless you fork over the $150 ETF) at $720 and it brings the total to $1939...and we haven't even factored taxes and fees yet, bringing it over two grand.

*not truly unlimited; read the fine print