If Clearwire provided good service, they wouldn't need ETFs. ETFs are there to screw the customer and protect companies which can't or don't fullfil their end of the contract. It's a race to the bottom in customer service these days.
Not necessarily. Installation, equipment and setup can be expensive so the ETF insures the company recoups those costs in the even the customer cancels before those costs can be recouped through the ongoing monthly fee.
The used modem isn't worth as much as a new modem and there is the cost of setting up the account and coming out for the install.
Again, anyone who doesn't think the ETF is fair, shouldn't have signed the contract. Now if the service sucked, that is a different matter..then it's a case of Clearwire not delivering their end of the deal.