I assumed that the fee for those phones wouldn't be that high, but you're right that's iPhone territory, so maybe that's the way to go.
I pay £26 a month for my One X, 900 minutes, unlimited texts and 750MB internet and the phone was free, but I did haggle that down a bit. If you've been with Orange for a while then you may be able to get something similar, or better.
Transfering music to my HTC from my PC is dead easy too. Just like putting stuff on a USB pen.
It was probably the case at the start, but as the quality of Android phones has increased, so has the pricing. Don't think for a second Samsung don't make a hefty margin on the S3, and they're prone to rip off customers a little bit too, see S3mini
If you're after the best deal, haggling works a treat! It won't work on the iPhone so much though because Apple don't want to devalue the brand, so they don't allow carriers the same leeway. The carriers also know they're guaranteed to sell iPhones
If you want the best deal, phone your carrier and ask for a PAC code. They'll offer you quite a bit to stay, but don't agree to anything. What happens next is you will be passed through to a 'save team', but this only happens if you get to the end of the call and hang up. The 'save team' team they'll pass you through to whilst on the phone are not the same department.
They'll phone you back in a last ditch effort to keep you, this is when you negotiate. The team that calls you back have bigger leeway and can agree to pretty much anything within reason.
If you don't get the call back, you simply wait for your PAC code to expire and go through the process again.
It works, and it's been the process for donkeys years. All of the main networks operate in the same fashion too