It's pretty amazing to me that there are pretty regular sales of of crappy no-contract Android 4.X phones for under $10. Here's a current one:
http://www.target.com/p/brightspot-zte-zinger-prepaid-cell-p...
http://www.target.com/p/brightspot-zte-zinger-prepaid-cell-p...
That said, Dropcam is still overpriced and will have to compete when the next copycat comes along, or someone provides their type of service for these phone-cams or Foscams.
How do you keep them powered, have you had to run extra power cables?
did you mean Android 2.x for $40?