Bionic.. HA! Theres no possible way I can increase my budget to $250, anyway I'm pretty sure I found the answer to my original question and that answer is yes.
You made that comment as if choosing a pre-paid plan limits my selection of phone. Is it not true that all phones on a given carrier's network, say Tmobile, are compatible with both pre paid and monthly plans? Say I pick up a used HTC Nexus One, won't I have the choice between a 10c/minute pre paid plan or a $50/month unlimited everything plan?