You're right. However, some telcos do offer cheaper monthly rates. T-Mobile is leading the charge on that in the US.

Yes if you stay with ATT/Verizon/Sprint. If you instead choose a MVNO like StraightTalk or Virgin Mobile, you'll pay less. I pay $45/mo on StraightTalk, and when I buy a new phone in the next year or so, I'll jump to $30/mo with Virgin Mobile since I don't need unlimited voice (or text...).

If you're paying for yourself and either buying used or slightly outdated hardware(or getting a new Nexus 4), this is probably completely true. If you're bundling several smartphones and regular phones, the contract price can win out. You still need to shop around to see what the best price is if you're going with iOS or the more expensive Android devices.

For example, since I'm sharing a plan with my family, the ATT contract comes out to around 20% cheaper than a similar contractless byo device Virgin Mobile service for iPhones, upgrading only after the contract is up.

In Romania I pay 15€ monthly for a PrePay plan with 1 GB of data, 3000 minutes in the same network and 150 national/international minutes. It's a PrePay, no contract, and I've seen similar deals in other European countries.

Trust me, you're being ripped off.