And most of the "Subsidies are bad" threads focus on and blame the iPhone for inflating device prices. The theory is that Apple charged a lot for the iPhone, but because of the subsidy, people only pay $200 and don't realize the true cost. Therefore, it let every other manufacturer raise their price. So, if we eliminated subsidies, phones would have to compete with each other in an open market, lowering the price.
You said that you have "always heard" that Apple gouges carriers on be iPhone, which led me to believe you've read a couple of articles or posts about it but had never really looked or researched it for yourself. Because then you would know that smart device prices have always been in the 600-700 range, so you would have never had made the comment that you did to begin with.