T-Mobile's Galaxy Note II Costs $369

Why would that be a mistake? That's how the Value plan works. You get a cheap plan with no contract, and you buy the phone for full price. Its just this way you don't pay full price up front, but spread out over a payment plan.

Granted, Value Plan + $20 device payment makes your monthly costs probably about the same as going to one of the other carriers and getting a subsidy (though without the service contract)