That's essentially what I was getting at, thanks! Now comes another question, when I reactivate with new SIM via iTunes would I be forced to extend my contract?
No you will not be forced to extend the contract.
I put a blank sim card into my iPhone, plugged it into iTunes. I expected some type of activation screen but I got nothing. How does one force the Activation screen? AND - are we SURE the old (good) iPhone SIm will not be DE-activated upon doing this?
You may have to actually restore the phone, in order to ask it to reactivate. My SIM went bad the same time I was getting the phone replaced via Apple Care, so that was the only time I had to reactivate my phone.
As for the deactivation, it WILL Deactivate your old SIM. This whole process would only be advisable if you are willing to forgo 3G access on your iPhone when using the iPad. Otherwise, you would have to invest in some sort of SIM cloner to do otherwise, as both SIMs would need the same ID code to work properly.
TEG