Really, you dont have a complaint.
See... it costs $299 for a 16gb iphone if you sign up with a new contract with At&t.
If you choose to have At&t without a contract, the same phone will cost you $200 more.
That's where the fee comes from... BECAUSE you are already in a contract, they are just charging you the additional $200. Basically, they're willing to sell you the phone without a contract for $200 more.
They've always done this, with every phone they have ever sold. Sorry.
THANK YOU! This finally makes sense to me!