Yes - and no. It's the same with all subsidized hardware (phones too). Of course you pay a lot for the contract, if you add it up over the years, it's usually not a cheap offer at all - for the hardware.

You mustn't forget, though, that usually (at least that's what I do) you don't sign the contract because you want the netbook. Most people need some kind of data plan anyway, so the question is if you spend the money on one with or without hardware. The data plan without hardware might be a little cheaper, but the delta in most cases is worth the hardware. (This way I got my Nokia 6110 Navigator for €137: €17,- for the phone plus 24*€5,- for the data plan. I'd have taken the data plan anyway.)