This plan.... won't fly unless there is incentive to the consumer to buy outright. Expecting the consumer to sacrifice a subsidy and keep plan rates high won't cut it. As for the European model, sure it's great, true competition for business but that can't work here now either since SIM-unlocking your phone is now illegal w/o carrier permission.
God how I hate how American corporations do business. Investor-driven, lobbyist-funded, apathetic or downright hostile to the desires of the consumer who pays the dividends and CEO mega-million $ salaries.