re: so AT&T no longer offers discount on phones?

You have always paid full price for the phone, it was just better hidden than it is now.

Now they show you exactly where the costs are, and what you're paying for.

With the mobileshare plans, you have the option for subsidized pricing (the contract upgrades, $600 phones for $199, etc) but your monthly bill is increased by about $15 per line.

It's particularly beneficial for people who can go longer than 2 years on the same phone, or those who like to get their phones on the cheap on ebay/craigslist etc.

In some instances, the Next program can actually save you some money. Depends on the outright cost of the phone.