[cjvitek]

Different carriers, different pricing plans, different subsidy plans...different scenarios.

Some carriers subsidize the phone more than other, some have cheaper plans more than others. You can't compare them directly - it is comparing apples and oranges.

AT&T subsidizes phones more than Verizon (and I think more than Sprint, not sure about T-Mobile).

If you don't like AT&T's policies, don't sign a contract with them. As simple as that. Don't sign a contract, then complain when AT&T adheres to the terms of that contract. Yes, if you want the iPhone in the USA, you need a contract with AT&T (or buy an unlocked phone via Ebay) but still, no one is forcing you to sign it.

AT&T doesn't answer to Apple - to say "it isn't in line with Apple's product cycling" is ludicrous. They are two separate companies - why don't you tell Apple to get in line with AT&T's contract upgrades? That arguement makes just as much sense.