Yeah that was my original thought. The 2 year contract really only makes financial sense if you upgrade to the latest greatest asap. My wife and I on the other hand prefer to use a phone until it is completely useless. This normally means 3-4 years. Even then I'm going to be using my old Lumia 900 around the house, and I'll steal her old iPhone to use with a goTenna for camping.
I think the USA is starting to change away from the contract, but I'm not going to hold my breath for Verizon.
Like you, I prefer to use it until it can't be used any more. I bought my 920 last spring, added another for my daughter in January, and another for my husband about 2 weeks ago. Although they are no longer marketed, they are getting the latest firmware/OS updates, they have 1 GB RAM and 32 GB memory, and best of all, they're free on contract whereas they were $200 when they were introduced.
Well, AT&T can be every bit as bad, but with the SIM chip, I can threaten to move to T-Mo (although, in reality, reception sucks for a 3-block radius around my house in metropolitan Orange County Calif.). But when I left Sprint and couldn't take my phone with me, I swore I'd never go CDMA again. And at least with AT&T, you can buy unlocked and BYOD.