Not being "corralled" by a contract means you will pay full retail sales price for the iPhone, and you have used the same carrier anyway.
I paid well less than half of what you paid with a two year contract, and I would be using the same carrier anyway and paying the same rate if I didn't have a contract with my carrier after having to pay over $700 for my iPhone. Under those circumstances, it wouldn't be very smart of me not to allow my carrier to pay well over half the cost of the iPhone. If I traveled internationally on a regular basis or wanted to be able to change carriers here on a whim without a contract, I would pay full retail price and purchase an unlocked iPhone.