I went with 3 as you get unlimited data which for me means I can use the phone for streaming media without worrying about checking my data usage, for example I am working away from home and can watch whatever I want on sky go or iPlayer etc no worries, or stream all my music from home, listen to internet radio or use sat nav all on 3g inclusive.
For me buying anything above a 16gb iPhone is a rip off as I don't have music or video on it when i can stream for free so that keeps the initial cost down too, the only 'deal' i got was that my missus was on 3 so as as such me joining we both got £30 off our next month so iPhone 5 16gb was £75 - £30 - £30 = £15 £30 a month contract + VAT
I agree you are getting ripped off if you pay £200 for a 64gb iPhone5 on a £40 a month contract with just 1gb data a month which is bugger all, not even enough to stream a footy match or 5/6 hours of radio...