With the Moto E, Motorola wants to make the Feature Phone a relic of the past. By offering a decently performing smartphone for cheap (just $129 in the U.S.), Motorola wants you to ask, "Why wouldn't I get this instead of a flip phone?"
Data costs, for one. But assuming you can find a cheap plan, there really isn't much other reason. The Moto E delivers a respectable smartphone experience, and it's got a nice design, too. From a distance, it actually looks a lot like an iPhone 4 or iPhone 4S, and it even comes in the same colors: black or white.