Thanks for your US-centric viewpoint. You'll be happy to know that smartphone plans abroad don't cost nearly that much. In fact, many don't even require 2-year contracts..
As for the Canadian perspective on this, it costs $20 per month for unlimited text/picture messages, voice mail, caller ID, satellite radio, and
unlimited data. It's sold as a bundle so these can't really be separated. This is on top of the base minutes plan, so my total phone bill is $47 per month.
I don't have an iphone or android but I use Opera Mini on my phone almost every day (bathroom reading

). Youtube works great as well. It's all included in the data plan.
I still don't see much hope for smart phones. Last time I was at the Bell store, they wanted $600 for an iphone. Android phones start at about $400. My phone is an LG Xenon and cost $300 without a contract (I renewed for 2 years so it cost $80). My parents are typical people who just want a phone, and their phones were only $60 as part of a pay-as-you-go scheme.