I've had two iPhones and I certainly don't fit that description. Neither do millions of other users. The iPhone is a great device, as are Android and lately, Windows phones. Regardless, the iPhone is still considered the Cadillac of smart phones because it invented the market. Carriers want it because a lot of ordinary folks ask for it.
If the carrier is willing to sell it for a third of its cost and hope to turn a profit over the life of a two year contract, that sounds like a plan. If it isn't working, we cannot say that they went into the i-Deal with their eyes shut.