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that has to be with a new contract, Motorola and Walmart would make no money selling it for $50. I bet there's a "with new 2-year contract" written in fine print there.
Of course it's gonna be with a contract. I bought an Ally from them, and decided to return it for a Droid because I didn't like the Ally in comparison at all. Worst. Experience. Ever. The whole exchange process took about two hours. It didn't require them to call in, and I chose to do the ESN swap myself out of frustration.
Long story short, if you don't plan on returning the phone, go for it. But expect a contract as part of the deal.
It often is better to buy your phone somewhere other than Verizon. I got my X at Costco which also allows you to return your phone anytime up to 90 days. It also included an accessory pack.
Go for it. And yes of course it includes a two year contract.