When Apple start selling development phones (as Google do), I'll be happy to have a phone dedicated to betas only. Until that time, I'm sure I'm not getting extra contracts just to test software out. (and all software currently submitted to the App Store has to be tested against 3.0 so there's not really a way around it apart from putting betas on the phone!)
There's always the iPod touch unless you're writing phone-specific software. There's also the first generation iPhone you can get on ebay with no contract. There's tons of ways to get development hardware. Come on man.