re: Verizon kills off service contracts, smartphone subsidies

Not at all.

The discount is for being out of contract. As long as you don't buy a phone on contract, you keep the discount. If you want to buy a new phone and divide the payments up over 24 months, you can absolutely do that without losing the discount. So for example, if you bought a new iPhone 6, its $650, which is $27/month. Your line would go down $25 for being out of contract, and then up $27. You'd be getting a new phone for two dollars a month more than you pay now, and not have to put the $199 up front like with a contracted phone.