other than the phone would be a little bulky (i have the nokia 6xxx), the phones are over-priced ($99 for the nokia, plus one year with 300 minutes for me), and the minutes are a bit pricy, it is pretty good.
the service was provided by verizon in my case (NY area).
i had it for one year, then just got a T610 (free) with t-mobile with my brother on the family plan for $50 a month (plus tax) with 300 shared anytime and free nights/weekend/t-mob to t-mob, plus $100 rebate each phone.
so for t-mobile, on average it's about $200 each line for a year, plus a free color camera phone (it was back in the beginning of 2004), plus tax it'd be about $250? i spent about $120 on the tracfone with 550 minutes total for one year.
yes you'd be saving some money, but i'm just saying that if you live in the city, getting a contract is not that bad (about $10 more a month?)
as for reception, surprisingly, the tracfone (verizon) has better reception than t-mobile in the suburbs (long island). otherwise, both t-mobile and tracfone were flawless for me.
hope my experience helps. i'd just get a regular $30 plan then get the cheapest phone that offers the most rebate.