Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)
Ask for the customer rentention department. Tell em that the $250 is higher than breaking the contract and you are going to sprint or Verizon for the iPhone 4S.
But seems like people are having luck claiming that their phone broke and need to get a new one. The key to this method is never utter the word iPhone.
First paragraph says to mention iPhone 4S, second says never to mention the iPhone.

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I'm pretty sure they log everything about your conversations. I've had reps bring things I've said up from months back, so be careful about what you say to each rep. I think it's best to keep the story consistent and hope you get someone nice on the line.
I'm to tired to make phone calls at this point, I think I give up.