wow...ok, it's apparently bed time for me, since I can't make arithmetic work. Which is sad, since I have a BA in Math.
And you'd save $209 over a 2 years contract by going unsubsidized.
oh, and I'm pretty sure handset protection is available either way. I know they tried to get me to pay for it after I RMA'ed my first BH2 (I paid cash, since I have the fabled $5.99 data plan).