I agree somewhat. But the business models of AT&T and T-Mobile do not reward you from BYOD "Bring your own device"
So although we can buy our own GSM/UMTS devices we still pay a subsidy surcharge in the service plans to run those devices at their full capacity / capabilities. Since the typical phone lasts 18 - 24 months, what is the benefit for the average user to buy them outright?
Agreed. In fact it could be argued that NOT getting a subsidized phone is foolish as you're paying the subsidy anyway, so you're effectively paying twice for your phone.