I'm not positive either, it's just what I've gleaned from all the stories. If the reporters/bloggers weren't being clear enough to indicate that people want the low price without a contract, then that's definitely a communication issue. I've understood that this was a big deal precisely because of what I mentioned though.

IMO, if you don't have and don't want a contract then you shouldn't be able to get the phone at the lower contract price. Sure, you're an existing customer so perhaps you may be entitled to some other loyalty discount, but you shouldn't be able to get the phone without a contract, thereby making it a much better deal than for new customers.