Good point - that's exactly what I'm doing. My phone is long past "eligibility" but I'm just riding it out. My kids phones have been through a lot (920s). I just bought them 830s off eBay for ~$200 each.
Yep, I like not being under contract, all of my phones were bought outright...i always get the AT&T Next & contract stuff, just ignore it
Contracts are not all bad, especially if you are locked into an unlimited plan. I got the M8 for free on a two year making my plan about $58 a month once you amortize out the phone cost and include taxes/fees. Not bad at all.