IPhone4 used as mobile hotspot for iPad2

This option (at $20/mo for 2gb) seems the most economical but what are the downsides?  
Can I still use the phone at the same time for incoming/outgoing calls?  
 Can I turn off the "hotspot" button to conserve useage?  
 Would it be better to just get a monthly data plan for the iPad alone (@ $20/mo for 1gb or $35 for 3gb)?
If I do use it as a hotspot, should I then get just the WiFi version of the iPad2?

You cannot use the phone for calls while you are using the hotspot for data. That's a limitation of CDMA. Calls will take priority over data. I have read, but can't personally confirm, that data use on the phone while the hotspot is in use counts against the 2GB. If you plan to always have your phone with you when you want 3G data on the iPad, then you can save money by buying the WiFi version and using the hotspot. If the devices will be separated, for example use by a family member, then you may want the 3G model. You need to think about how and where you are going to use the iPad to make the best decision.

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