Because there is an implicit cost to being in a contract. It restricts your choices. I know you plan on being with Verizon for the forseeable future, but things change quickly in the world of mobile devices. Also, people move for jobs, school, family reasons, etc, and service quality isn't consistent even on Verizon.
For some people it's worth $400 to avoid having their decisions restricted by a contract.
Because there is an implicit cost to being in a contract. It restricts your choices. I know you plan on being with Verizon for the forseeable future, but things change quickly in the world of mobile devices. Also, people move for jobs, school, family reasons, etc, and service quality isn't consistent even on Verizon.
For some people it's worth $400 to avoid having their decisions restricted by a contract.