Buy a no-contract Palm Pixi Plus at Amazon for $37. [Prices will fluctuate. I have since seen this up to $50]
Activate it on PagePlus on the prepaid $10 for 100 minute for 4 months plan after turning off the wireless data feature.
The result is a nearly-full-fundtion smartphone, with a good selection of apps. Voice coverage is Verizon.
Data works on WiFi only.