It is a big outlay - I paid £350 for my 3GS a few months ago and to be honest its been worth it as I have a phone that works, gets email and made my life easier again - the previous samsun Omnia I got so frustrated with I wanted to throw it at the wall daily.
I might buy one now and then in October when the Business contract comes up move to o2 and get another - then sell the Orange one.