They didn’t really kill it, they just front loaded the cost so you are paying as much for the phone as if you canceled the contract and paid the penalty.
I use a service that has been around for a while, straight talk, a Walmart service, that uses t-mobile, $45 a month, unlimited everything.
With the result that people won't be tempted to get a new "free" phone every two years, and just hang onto their old phones. It may also create a market for "old" phones from people on a contract plan who upgrade their phones.