I think any parent paying their child's cell phone bill should be slapped in the face (no offense to anyone's parent).
Mine have for the last two years, but they pushed for it while I've been at college. That will change in just a couple of weeks...our contract is up.
I think cell phones serve a practical use for HS freshman and up. Coming from someone who was in after-school activities before I could drive, they really help. Under that level, though, unacceptable. And texting....UGH.
I don't really want an iPhone. I have a regular cell, a Palm PDA, and a iPod. Good enough.