When all phones are required to be unlocked on demand, you can kiss the $99 or $199 iPhone goodbye. They'll START at $499 or $549, to reflect the true retail value of the phones. It's locking that makes subsidized prices possible.
No it isn't. Contracts with penalties to break them are what make subsidized prices possible.
DOH! Guess I'm a bit late to this discussion. Others already beat me to it.