i've been following this and now my head is spinning. if there's positively no difference between the transmission protocols/methods of sms and imessage - then why did apple develop imessage? what advantage is it?
The difference between SMS and iMessage is that you are having and able to SMS because of your carrier who provide it to you via radio waves 2G digital signals. Without your carrier providing you with that service, there isn't such a chance you could be able to send/receive SMS, and that's why your SMS are linked to your phone number. If your carrier comes to have a maintenance issue or whatever the can suspend both calls and SMS function so you won't be able to use SMS. You carrier is award of how many SMS you send/receive in a month, they even know to whom you've send SMS to and the date and the time, it's easy for your carrier to follow your SMS activities. In addition, they can limit your usage of the SMS and start taxing you per SMS, that why they have SMS plans.
iMessage in the other hand relay only on radio waves GPRS/EDGE/3G/WiFi digital signals. While it's true that your carrier is the one providing you GPRS/EDGE/3G, they basically have no control over what you are using it for. The GPRS/EDGE/3G is a plain Internet base activities and if you know what is Internet, you sure know that you carrier is nowhere able to control all internet right?
iMessage uses a specific server to control and allow operability of the application, it's an Apple server certainly which has nothing to do with your carrier so you carrier can't charge you for it. Apple could charge for iMessage users using Apple server, but good for us, they allowing us to use their server for free
. Now let's say that we have iMessage app for Internet browser, you log in with your apple ID, you send a message to your friend using the browser app, the message land in Apple server and apple server forward your message to your friend, the same thing happens when your friend replies to your message. (while you could use your carrier GPRS/EDGE/3G to browse Internet, to send that message to your friend via the iMessage browser app, it has nothing to do with your carrier except that you are using their data which you certainly already paid for) but to save the hassle of going to an Internet browser and login all the time before doing iMessage, Apple decide to build the algorithm within the default SMS app in your iPhone, what is going on when you send an iMessage using your SMS app of your iPhone, is the same as if you where using an iMessage browser app. So here you are not depending on your carrier except for the GPRS/EDGE/3G connection you are using from them, once you carrier stop providing you GPRS/EDGE/3G network, you will not be able to use iMessage anymore unless you have a wifi spot which is almost the same as a GPRS/EDGE/3G except that WiFi is a lot more faster than those networks connections your carrier provide to you. iMessage work on wifi the same way it works on GPRS/EDGE/3G and only Apple is capable of controlling your iMessage if they wish to do so. If you are out of GPRS/EDGE/3G and WiFi signal or range, or out of Internet connection on your iPhone, then there is no way you could use iMessage even though your phone have full 2G signals in your phone. You will only be able to basically use your 2G signals to make and receive phone calls and SMS.
Like Jmills87 mentioned, the advantages of using iMessage is to avoid the extra charges from you carrier in case you do not have unlimited SMS plan but have GPRS/EDGE/3G or at least a WiFi connection in your phone, notice that you can't send iMessage to non-iMessage users.