DMX, I misread your post at first and responded incorrectly on twitter. Wanted to post here to clarify what I meant.
Although I've never heard of that particular loophole, I do have one that will work every time. Before doing this trick, make sure you already have a feature phone that can be activated on Verizon's network. The loophole is to ADD a line and purchase the smartphone of choice for that line. Then you switch the new phone to your line. Now you activate a feature phone (dumbphone) onto the new line and suspend it. Yes you'll have a line that you are paying $9.99 a month for, that you're not even using, however, let's do the math:
Because of the fact that you are ADDING a new line, this "loophole" can never be eliminated. You will only be able to do this every 2 years though. Once the contract runs out on the new line with the feature phone, drop the line. Want to upgrade 2 years later? Do it again. You also will not be losing your unlimited data by doing this (if you still have it).