Not everyone pays $50/month. With a corporate discount, our 2GB data plan is $19/month. My kids chose to have that instead of an allowance. We'd have the family texting plan whether we had smart phones or not. For us, it's money well spent since we all use our iPhones in lots of ways and they've made our lives more convenient. It was a beautiful thing seeng my kids face time their sick grandmother when she was in the hospital on nights they couldn't physically be there.
I don't really get the disdain about it. I've noticed that many people who previously dished the iPhones all have them now. One of my family members was a hold-out still using a pay as you go flip phone. We got him an iPod for XMas, knowing he'd really enjoy it as he'd played around with some of our stuff. Once he started figuring it all out, he was like, "It doesn't make sense to have this and a phone, and be tied just to a wireless network", so we returned it and he's getting an iPhone. Interestingly enough, the thing he liked best was the GPS.