That's the problem I have with the tiered plans. You already bought the phone, but now you have to pay a pointless $40 per smart phone PER MONTH just for the right to use the damn thing on their network? So, over the course of 2 years, for one phone... if you get a new smart phone for $200 on a 2 year contract, that phone alone will actually cost you a grand total of $1160, which doesn't even include the monthly fee for the actual plan...which can be $70, $80, $90, or $100 per month. Tack on, say, an $80 plan and you'll be paying around $3100 for 24 months to use a smartphone on Verizon's network. That's just for one phone. If you have 4 total smartphones (which is how they are pushing the plan...for families to share the same plan), that's about $6600....or $270 per month. That's a lot of money to be shelling out for a stupid capped plan.
Putting it in those terms is probably pretty eye opening to those who wonder why they don't have any savings. After taking some time to move our family plan over to Sprint for about a year, I could see why Verizon's network was so much better. In my area, it's a case where I'm getting what I pay for. I know that's not the case in all areas where the big 3 providers are prevalent, but as we can see with Verizon's new Tiered Plans or the grandfathered Unlimited Data Plans, people will still spend the money even though the way it breaks down as you've described it, brings a level of insanity to the pricing layout that most people won't ever think about. At the end of my contract, Verizon will probably come up with yet another 'new' family of plans I'll be considering but I'll be more clued in on the total charges thanks to this thread.