@Medic97 (and everyone else):
It looks like they somehow are getting TMobile to give us the phones for free, and then they are keeping the $200 themselves for the service of that and the discounted monthly costs.
My first bill just came, just paid it off with my BRG (I think they just sent me something about a new 2x bonus category that includes cell phone service, IIRC). No complaints here!
@Medic97:
You won't be able to trade these in in store, unless you get a rep that REALLY doesn't know what they are doing.