I'm quite happy with the Tmo prepaid + G1 combo. Like you, I use relatively few minutes. A $100 covers my needs and extends the expiration. This puts my monthly phone costs a little less than $8/month.
As Silent points out, there are some cases that will require a data connection or hack. My used G1 from eBay ($100, rooted/CM5) was wiped but apparently preserved its prior activation; I just turned on wifi and signed into google. Or maybe CM's ROM automagically allows wifi activation but I have not read that.
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Optimus T
CM7 + Zeam
TMo PAYG (no data). How I use it.
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