Yeah, you have to make the decision if you want to spend the extra money for a device (hard to just call it a phone) with multiple capabilities. I have thus far only paid for a single app for my android software, all the free software has offered a lot of flexibility to customize and personalize my programs.
I use my phone as a scheduler/planner, get updates on craigslist items I'm watching, jump onto the local scanner radio at a moments notice, quickly locate the name and artist of a song just by letting my phone listen to it, get personal and school e-mails wherever I'm at, check stocks, get my voicemails transcribed so I can read them silently instead of listening to them, watch some TV shows, shop or compare prices, use the GPS to find a location, or just go geocacheing (girlfriend likes it, I'm not a fan), use the E6B or link to the AH flight models on occasion while flying, mess with the neighbor's dogs with my dog whistle, use the bubble level to check something, use the compass to find my way around, it's one of my morning alarms, play games, text, and... oh right, call people!
I use the T-mobile mytouch, bought it for ~$100 when I upgraded my phone. No regrets, it's fun, and can be a great tool to have around.