Is it worth paying full price for the iphone?

My service provider (Koodo) ONLY sells the 8gb iPhone 4 and 16gb iPhone 5. I don't think think that's enough space for me, I need at least a 32gb 4S. However, this means I have to buy the phone at the apple store or elsewhere, and pay $500+ for it. Is it worth it?

Also, what are some legitimate websites to but the iPhone from, other than the apple store?

I would say it would be best to keep with your service provider. On the space issue go in and talk to them on storage and now there's cloud space which is taken up on the device.

It really doesn't matter where you buy it, just buy it from a named store, not some chinese knockoff website.
On the space you can always offload videos and pictures to your PC, you don't need to keep all on the phone.

Nothing is worth paying full price. Check Nextag on the Internet or type in "price comparisons" on Google.