Watching content of the quality found on HBO is a much better experience on my 47" TV than my 9.7" iPad. I don't need to be able to watch TV 24/7 regardless of where I am. Now give me an app that allows me to pay $10 a month to HBO instead of Comcast and you will get my interest and support.
I use an AT&T iPhone that is not unlocked. I have never done business with AT&T. I use a different provider. If people are willing to look there are ways to legally use an iPhone and not spend a ton of money or be locked into contracts for the privilege.
If you terminate your contract early and pay the ETF, the carrier can still require return of the phone. I understood this when I was trying to get an iPhone cheap. Sign up with AT&T and after a couple of months cancel the service and pay the $350 ETF, but they will ask for the phone back. So this is not a way to get an iPhone for $350. Wish it was.
To further support my theory. The 64GB iPod Touch costs the same as the iPad 2. Why would you buy a Touch if an iPad costs the same. The answer is you don't want a 10" screen. A 7" Touch solves the size and cost problems. Mark my words!