Not true, according to my AT&T contact. The $130 is for unlimited voice and data, but does not include SMS text messages. Those are $.20 each, or you need to get a package; the unlimited text package is $20, bringing the real "unlimited everything" price to $150.

[rant]That said, I think SMS is retarded. I don't understand the big fascination with it. If your device is on the internet, why wouldn't one use an instant messenger client? Even then, instant messengers are the biggest productivity black hole since Microsoft Powerpoint.[/rant]

I do think the iPhone is a brilliant device that's just a joy to use. It actually has a usable browser in a tiny little device (first ever, IMHO). Wikipedia, google, and the empegbbs in your pocket (usable) is fantastic. I'm probably going to get one next week, but I wouldn't be considering it if I didn't get reimbursed for my cellular bill.