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Practically any Droid can be used exclusively on WiFi, and no internet plan. You'd be a bit shorthanding yourself but its your choice and you can turn on and off mobile data whenever you want. I have a friend who uses his Galaxy S on WiFi only, and that's still a pretty higher end phone. That said, that phone is probably the cheapest you can get for something that will run Android fully. Its still got the best GPU among the single core phones AFAIK.
 
The LG optimus from Virgin Mobile is pretty good. This is the phone I have. I only pay $25 a month for unlimited data and text. I only have 300 minutes but I don't talk on the phone much anyway. The plan is now $35 but I got mine when it was $25 a month. The phone is $129 as of right now.
 
Also have the optimus v. Its an incredible value but takes some learning and getting used to! Now that I've had it awhile and worked out the kinks its awesome! Especially for the price (Also lucky enough to be on the $25.00 per mo. Plan.
 
If you check around I believe you will be pleased with the variety of choices you have, There's Virgin and Boost among others. Even Walmart and Kroger.
 
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