It was a $25 discount. So why would anyone ever knowingly choose to pay $600 more to be locked into a contract, plus pay $200 up front for the phone, plus $40 upgrade fee = $840 total which is more than the msrp of the phone and be locked for 2 years.
Some people prefer contracts, others do not. I have been recommending on these forums to either go on Edge/DPP or to pay full price up front for your device ever since they first started offering these discounts. Some people STILL prefer to sign up for a new contract. It makes no difference to me.