Guys, your financial analysis is specious.
If the Nexus 5 is sold via Google Play for $349 and is sold on contract via Sprint for $199, you are better off taking the unsubsidized deal. Otherwise, the subsidy that you effectively pay every month is going toward a $349 handset that is being treated the same as a $599 handset. And, honestly, if you cannot swing the $349 out of pocket because of lack of available cash, you might want to reconsider whether you are playing above your pay grade in the smartphone stakes.
AJ