>Or, you could buy whatever phone you wanted unlocked. Eventually, pay-as-you-go SIM cards would pop up in the U.S. as a result.
Well, I hate to break it to the author, but in Europe (at least, here in Central Europe), that is pretty much the standard and possible with both Android and iPhones (and Window 7 phones). You can buy the locked subsidised phones here, and actually, more people are doing it now than in the past, but the most are still unlocked.
The fact that it doesn't work in US has more in common that customers don't want that, not the carriers. With the pricey smartphones, actually, more people here in Europe are buying subsidised phones than with the cheap dumbphones of the past.
I just thought it's worth mentioning.