For the past couple months I’ve had a prepaid Motorola phone with service provided by Tracfone. I like not having a contract with huge early termination fees. Previously my phone broke during a contract and I had to pay a lot of money to buy a phone because it was not bundled with [...]

Please note that this addresses the iPhone without “jail-breaking” or hacking it.  Which I feel should not be necessary for many of the features I list here.
Cannot install programs
Surely any decent electronics device will let you install programs.  Computers can.  Blackberry devices can.  Treo devices can.  You can easily install programs on Windows Mobile.  However [...]