Can you buy the iphone with the at&t contract than cancel the contract?

Does anyone know or has anyone tried getting the iphone with AT&T and then canceling the contract? What is ATT charging for iphone if I do this and then cancel my contract? Seems like this is the only way to buy the phone outright without going through e-bay.

AT&T does sell the iPhone without a contract however it is still carrier locked.
3G 8GB - $499
3GS 16GB - $599
3GS 32GB - $699
Also if they have a 3G 16GB still in stock then its $549.
This is all according to AT&T's iPhone FAQ:
http://www.wireless.att.com/learn/internet/iphone-faq.jsp

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