It is very annoying when you want a new phone, but your phone contract will not allow it. I wanted to upgrade to an iPhone and they wouldn't let me. My Contract wasn't up yet. It was a bunch of crap. Other cell phone companies should definitely go to a monthly contract.
T-mobile's policy of no annual contracts and monthly charges should be adapted by all cell phone companies. I myself respect T-mobile's business decision as it does not pressure the consumer into a contract in order to get a certain phone. This would enable a better dynamic between consumer and company. It would create an easier and more flexible cell phone plan without fear of penalty costs.
I do agree, and hope others do as well, but I think from a business perspective they will choose not to. Cell phone companies love the contracts because it forces you to stay with them for years. I feel that monthly charges are better for the consumer, so I agree.
I understand that it can be annoying at times, but at least you know what your monthly charges will be and you can budget for it. Once you lock in that yearly price, it can't be changed until it is time to renew. You don't have to worry about forgetting. However, it is a personal choice, and if you want the monthly deal, go with T-Mobile.