So it seems I got it to work without getting a new sim card and doing it over the phone. I did not turn on the iPhone 5. The rep told me to go on the website and go to switch a device. I did it through there and I had the option to keep unlimited data. It worked just fine. I called up Verizon after to make sure I still had unlimited and the dummy phone line had no data plan on it and was all confirmed.
This sounds promising, there are several stories starting to emerge of the overall plan working. Some have had to go into the store, some over the phone and now this one all on the web site.