Sadly, yes. I'm not happy about that personally. I like to get a new phone every couple of years because it seems the reception and battery life keep improving, but I don't want to pay for a lot of functionality (meaning, I like the free phones). OTOH, I do have a PDA and feel no need to keep upgrading it ... I'm using a Clie that I bought over 5 years ago ... it's perfect for my needs.
I guess eventually I'll get a new PDA/phone, but I won't be happy about it.
I think anything that you can talk into that someone answers, is a phone. Call it a smart phone to distinguish from the dumb type I use.