So there is metro pcs, boost mobile, trac phone, and it looks like AT&T and t mobile even offer these plans? Which I don't get... Why would anyone take their normal plans if they offer a cheaper prepaid option....
Who is the one to go with? Can I just unlock my current iPhone?
AT&T will unlock your phone for you if you are off contract. Just go into the store and ask. EDIT - DERP, your on Verizon. Just call them and ask, if your off contract, or look on craigslist; I'm sure there is someone or a buisness local to you that can do it.
Sprint, Verizon, ATT&T and T-Mobile are the only real providers. Most of the smaller providers such a Virgin, Boost, Page Plus ect. all are resellers that come with a catch; they either offer crappy data speeds, reduced coverage maps, or some other major draw back. My wife is on Page Plus - She has Verizon coverage and more text and voice minuites then she could use in a month, but only gets a few hundred megabytes of data, for 29.95/month. She doesent surf the net on her phone so its perfect for her, but wouldn't work for me or a lot of other users.
Major carriers offer pre and post paid plans as some people want the 600 phone, but only have 200, so the carrier will subsidize the phone's cost upfront in exchange for a higher monthly bill and a two year agreement. Those who are willing to pay full price for their phone, or use an older and/or cheaper phone get better per month deals. As with most things, if you want the latest and greatest, their gonna make you pay for it one way or the other. From purely a cost standpoint prepaid is definitely the way to go.
The Nexus 4 with T-mobile is perhaps the best bang for buck combo available. As previously mentioned, its 30/month for unlimited text and data, with 100 minutes of voice time per month, or 50 for unlimited everything. Wait until you can buy the Nexus direct from Google though, as T-mobile charges extra for it though their is no difference between their branded version and the unlocked version from Google.
As a side note, the Nexus is sold as a 4g phone (not 4g LTE which is much faster), but there is a dormant 4g LTE chip inside the Nexus. It comes paired with the Nexus's processor so Google had no choice but to include it. It will only work on band 4 (1700Mhz) which is where T-Mobiles LTE will be when they finally deploy it next year. AT&T also uses band 4 in a half dozen or so cities currently. Its just a few setting changes away from being activated if your in the right city.