Present pricing for Motorola Droid without being tied down:
2-year 'contract' $200 + $375 ETF = $575 Month-to-month from Verizon = $559 Direct from Motorola = $600
It's all about the same deal. If you've gotta pay activation (~$40?) with the month-to-month, it's a better deal to just pay the ETF at any point during your contract.