I want the 3GS - but not with a noose around my neck

Question

I like the new features in the 3GS, BUT I won't be getting one because of AT&T's punitive pricing tiers for their existing customers. What broke the camel's back for me is the requirement to extend the contract for another 2 years. Is AT&T Wireless so afraid of it's churn rate that it believes that it can't survive without an indentured customer base? This is coming at a time when carriers are starting to revert back to 1-year contracts.
I would have been happy to spend $700 (now) for a 32GB 3GS - BUT I'm not going to pay full price AND extend my contract for 24 months. If I bought the 3GS, I would have then dumped my 16GB 3G on eBay or Craigslist - and that would potentially have given AT&T a new customer. That is AT&T's loss.
I believe that AT&T dropped the ball on this one. IMO, the 3GS purchase options should have been something along the lines of:
1) pay full price with no contract extension. Why? Because your current contract is already paying off the subsidy on your current phone.
2) for new customers - purchase a subsidized phone and a new 24 month contract.
3) for existing customers whose current phone is subsidized - allow customer to pay off the subsidy on the current phone, pay full price with no contract extension or purchase a subsidized phone and extend their contract for another 24 months.
4) for existing customers greater than 24 months (aka: month-to-month customers) - pay full price with no contract extension or purchase a subsidized phone and extend their contract for another 24 months.
Check out this link: http://news.cnet.com/8301-13924_3-10263278-64.html
I am eligible for the upgrade in December 2009. My 24 months is up at the end of July 2010. I'll upgrade the battery in my 16GB 3G this autumn to a higher capacity battery - this will extend the life of my iPhone. Then I will wait for the summer of 2010. I want to see if Apple comes out with a new dual-core iPhone in 2010, on a different carrier - or at the very least for the price to become lower.
For now, there are not enough features-to-cost for me to justify paying full price for a 3GS and extending my contract for another 2 years.

Answer 1

Templeton Peck wrote:
Here you go Yardsalekier: http://gizmodo.com/5284318/whiners-of-the-world-shut-up-about-the-iphone-3gs-upg rade-price
Unlike the schmo that wrote that article, I don't have a problem with the subsidy. I just want to be able to purchase the phone outright, pay the activation fee, and not have to extend my contract.
BTW, I logged onto my account and went through the "no committment" upgrade option. It defaulted me to the $499/2-year renewal program. groan
I think I'll have to wait until the phone is in the stores and then drive to the AT&T store in the mall to see if the purchase options are different.