I did what you did, but dropped the text portion to save another $10/mo. I send/receive texts with Google Voice instead. I get frustrated with T-Mobile's service but I am happy they give me the freedom to customize my plan and offer a no-contract option.
I even got the phone at the subsidized price. But I canceled my contract after a few days and switched to a no-contract plan. I believe I ended up paying two activation fees. Google was supposed to bill me for the difference between subsidized and un-subsidized, but they haven't caught up with me yet.