Conditions like... You have to improve your network speed, get off an antiquated 1995 CDMA Network.
In reality, Verizon CEO indicated they never were approached.
http://isource.com/2011/01/16/verizon-never-approached-to-carry-the-original-iphone/
That is the story he better stick with because if he was and didn't take it, his career should be over. Thats like cutting Michael Jordan from your basketball team.
It depends on you definition of approached. I know people who worked at MVNO's who were approached as Apple was looking at options. Even if Verizon was offered the iPhone it is not a career ending decision as AT&T took a massive gamble and in the end pissed off a lot of customers.
The speed argument doesn't work for a lot of people in high density areas as sure AT&T is fast but can I make a call, hell no. It is like the argument that you can not surf and call on CDMA. Yes great argument but a lot of people in high density areas would be happy making a call.