To break contract it would of been $270 for me and my wires phone, we had iPhone 4's and wanted the new iPhone 4S. Instead of breaking contract or paying $450 per phone for early upgrade. We just added two more lines at $10 extra a month or contract ends in december so we will just cancel the other lines then. Plus we sold the our iPhone 4s for $650 (together). I'll get the 32gb and she'll get the 16gb $500 total plus 2 months of $20 a month for new lines minus $650 equals $110 in pocket extra plus 2 new iPhone 4Ses.
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I've been using iOS 5 for weeks now, it works just like regular messages but it will determine if the other user has iOS 5 or not, if the person your messaging has it, It sends it via iMessages, with nice blue bubbles instead of the old green bubbles.
But when you open up new lines that adds contracts to those lines. I have 4 lines. My main one's contract ends next year but the other lines still have more time on them since I opened them at a different point.