I am confounded by this too. Do the math people, you are throwing away money when you buy on contract! Yes, I paid over $600 for the iPhone 4S, but compared to a 2-year AT&T contract I will save $1000 on H2O Wireless.
Sadly, there are a lot of Windoze dorks that insist on maximizing browser windows to full screen. Yes of course it's pointless since web pages are usually in portrait format, but Windoze has unfortunately conditioned a lot of people to work in a very inefficient single-window mode. If you go into an Apple store you can often see browsers covering the whole screen, with about 1/3 content and 2/3 blank space.
That picture is exactly how I hold my iPhone, except I tend to put my fifth finger along the bottom to keep the phone from slipping down. And as a lefty, I want to thank Apple for conveniently putting the volume buttons on the left side! I do think they should move the home button down and change it to short/wide capsule shape, which would leave more space for the screen.
There's also H20 Wireless. Buy an unlocked iPhone from Apple, and you can get unlimited talk, text, and 500 MB data for only $50/month. H20 uses the AT&T network so you get good coverage and speed. It's stupid to pay for a contract plan when you can save so much money by buying the phone.