So, based on these new ads from dell mobile, wirefly and others I called Verizon and explained my situation.
I am a new customer, bought the droid 1 week ago. Paid $199 plus $35 activation from the Verizon wireless store. Now I see the phone for $99 with free activation. Asked for a credit for the difference. They refused. So I asked if I could cancel my service and return the phone, only to buy it again. They said I could.
So, long story short - I canceled the Verizon service and i'm returning the droid.
As much as I enjoyed the phone, I'm not sure if i'll replace it or just use my business blackberry.