you think you are only paying $200, but you aren't. it's a $600 phone. they aren't in the business of giving out money. during the life of your contract, you are paying way more than that $400 difference.
tmobile has the getmoreplus plan that is no contract, and less money per month for the same features. all because you aren't paying for the subsidy.
because google could if they wanted not sell them but give them away.
there is enough spots for ads to make money off the things.
this would then piss off apple/motorola/at&t/verizon/etc perhaps
causing them a lot of financial problems due to people going to google/tmobile.
then its a google world in which we live in.
I understand what you're saying but most of us paid less than $200 for our droid and even less for the eris or other phones. If this was a phone that could be used on all carriers and was free then I would be impressed and see it as a game changer, but if they sell it for anything over $50 I won't be impressed as is still only works on one carrier.