I was told that they have cancel the 'new every two' contract, but they are honoring existing ones. I upgraded on my 'new every two' existing contract and waived the $30 upgrade fee. My next upgrade will cost me $30.
I'm sure if Verizon wants to be competitive, they may change policies in the future, so I am hoping my next upgrade will be free.
I did sign up for a program that will cover the phone 100% even if I drop it in the lake or lose it. Basically I can 'lose' my phone before the two years is up and they will replace it with a compatible phone. I think it was only $99 and it include a car charger, 'skin' and screen protector.