There's no way in Hell that phone is $650. An ETF is nothing more than a last-ditch money grab from the provider after they've lost your business.
I used to think that also, until I went to some of the cellphone forums and did some research. The high cost of cellphones is what has kept Apple and Motorola in business for the past several years.
Anywhere you buy a new Verizon Motorola Razr Maxx or iPhone, you'll pay at least $650 without contract. With contract, you can get them for about $300. That's $350 revenue they expect to recover over a two year period. It doesn't matter what Verizon pays for it, that's lost revenue they lose if you cancel the contract.
Nobody complains about the contract (most don't read it) when they sign up, but then they want to play the victim to the big bad corporation when they try to get out of it.
If you think that Dish or Verizon or whoever are trying to rip you off, don't do business with them. If you don't like the terms of a contract, don't sign it. Pay full price for the equipment, install it yourself, then you can turn service off and on as you like.