You can get iPhone without contract for the full price in any Apple store, I did it couple months back for iPhone 3GS. It's still locked to AT&T though (i.e. you don't sign 2-year contract, but it still doesn't accept non-AT&T SIM cards).
But apparently you can get unlocked one (for the full price of course) in Canada. If you live close to border, this could be a very viable option. Canada is probably going to get new iPhone by the end of the summer.
In any case you might need microSIM cutter: http://www.cutmysim.com/ or be very precise when wielding your box cutter.
I did this too this past October. It's a piece of cake to just walk in, say you want to pay full price, and walk out with a (still sealed in its box, even) brand new iPhone.
But apparently you can get unlocked one (for the full price of course) in Canada. If you live close to border, this could be a very viable option. Canada is probably going to get new iPhone by the end of the summer.
In any case you might need microSIM cutter: http://www.cutmysim.com/ or be very precise when wielding your box cutter.