You do not have to have an activation fee for an iPad on Verizon. Verizon has a $35 activation fee if you were to add the "Mobile Broadband Plan" ($20-1GB, $35-3GB, $50-5GB or $80-10GB) to your current Verizon account your phones are on(if you are a Verizon customer already). You may sign a 2 yr contract if you wish, but it does not bring down the price of the device, so it is pointless to do that. You may just sign up for month to month service, and still have that activation fee.
BUT, if you do not want an activation fee, you just start a new PREPAID Mobile Broadband Plan. It is month to month service, with NO activation fees. However, currently Verizon offers different Prepaid Mobile Broadband than Postpay Mobile Broadband. The Prepaid plans are as follows: Daily - $15-100MB , Weekly - $30-300MB, Monthly - $50-1GB or $80-5GB. Terrible deal compared to postpay options.
Anyway, this is all that Verizon offers, but my friend purchased his iPad2 through Apple's website I believe, and they offered him the $35 - 3GB plan(a contract plan), and it is prepaid(NO activation fee), but the prepaid account is under Apple's name technically(OSA PhoneInTheBox is what shows up), so Verizon bills Apple, Apple bills you. This sounds like exactly what all of you are looking for. Order it through Apple, they take your credit card info and bill you monthly. Apparently they have access to the postpay plans to be on prepaid accounts, so no activation fee.