How come so many people pay extraordinary prices for mobile devices and plans?

I would love to have the internet on my phone and a fun device. But, good Lord, that’s a lot of money! The phone itself is expensive, then all the bells and whistles, data plan, gps plan, etc. What a racket these companies have going! And it seems everyone is buying into it.

Is it just plain worth the money to most people? Has this stuff become a necessity, or at least a standard in our society? Why will people agree to pay so much, especially if it isn’t for work or something?