Seriously ... this isn't 2004. I know back in the day, pre-paid services were looked down upon .. but the truth of the matter is that you can get a pretty decent phone, include iphones, on these services and pay less per month, and there is no activation fee. Boost Mobile (Sprint) had unlimited 4g for $60 a month, yea, sprint sucks ... but Straight Talk now has 10g a month for $55 and most of their phones use verizon towers. The only downside is that some (all?) of these services tend to throttle your data during peak hours. Doesn't really bother me much.
I seriously have no clue why people who would complain about a $5 dollar activation fee increase and would seem to be so strapped for cash, yet still pay for plans. To each their own.
On the other hand, I am not addicted to my phone. Most people are. I have actually thought about buying a flip phone from verizon for $15 a month and getting an Ipod touch.