Verizon's business model is clear, give the phones away, charge big bucks for everything else. Verizon has the most inexpensive phones, but the most expensive pricing and the most ridiculous charges for every little thing you do. Their desire to charge constantly for everything is what leads them to use the software they do on these phones and limit things like connectivity between their phones and other devices (like your own PC).

If you can't get games, music, or ringtones to your phone from your PC from a 3rd party, then you HAVE to buy them from Verizon. And this is a situation that Verizon has purposely created, but does not exist with other carriers. Their phones have the ability to connect, Verizon just makes sure that their software cripples the phone. THAT is why Verizon really sucks (And their advertising for DROID is the most duplicitous piece of trash ever conceived. It borders on false advertising. THE most subserviant cell phone ever? Not with Verizon's crippleware on it.).

As far as coverage goes, AT&T's coverage is not all that different from Verizon's. Verizon probably has a little better quality of connection and better customer service overall. However, if Verizon thinks for one second that they will be able to cripple the iPhone and take over the pricing or access to iTunes Store music or apps, they might as well just stop negotiating now because it will never happen unless they pay Apple some royalty on the back end. Even then, I can't see Apple letting Verizon ruin its product, especially if this is going to be the model by which Apple sells itself and the iPhone to other carriers.