I was an existing Verizon customer, and finally convinced (today) the store to sell me an iPhone at cost. I had a Razor, from 2006, but my 'free upgrade' went to my brother a few months ago when he lost his, though I still had a free upgrade from two years ago I didn't use...apparently those don't accrue every two years.
Anyways, as an existing Verizon customer they made it really hard for me to get an iPhone--mainly without spending $749.00. I feel that many customers are in that weird stage where they can't get the iPhone at the 199/299 price and if they hadn't left Verizon for AT&T they more than likely weren't dying to have an iPhone for the price of a new iPad.
(sent from my iPhone)