Boils down to this. Retailers such as Best Buy, Wirefly, Amazon, etc... all get cutbacks for getting people to sign up for another 2 years. They are purchasing large quantities of these phones in order to reduce price on their end, and are relying solely on the cut backs, and not profit from the phone. They also rely on selling a large enough quantity to justify slashing the prices of these phones, and they can do this because they have little to no overhead.
Best Buy Mobile is simply occupying space in a retail chain that specializes in electronics. Even if the mobile dept wasn't there, Best Buy still would be. So overhead is relatively low.
This is especially true when it comes to online retailers that don't have to even have a physical store location. Even less overhead, a couple of packing/shipping guys, a warehouse, and a webmaster and all of their overhead is covered.
Now let's go to the VZW corporate stores. Those employees, and those buildings, are paid by profits made on their equipment/accessories sales. The overhead in these stores are a lot higher. Not to mention, some of them have a good service dept that can actually either fix/swap phones right there on the spot. Their salaries also come from phone/accessories sales. These stores also setup working units of all of their phones they have for sale, so the customer can physically hold the phone and play with it, and even make test calls on it before deciding to purchase it.
So, if you guys want to continue to go to the big box stores, or internet sales, eventually you can kiss the VZW stores goodbye. I already see a trend of VZW steering customers more and more to their website, and I don't like it (online price cheaper than in-store prices, instant rebates, etc...). Whenever a new device comes out, I love the fact that I can drive right down the road and sit in the store and play with the phone for an hour if I want to, before I decide whether or not I'm going to buy it. A two-year commitment (not that I ever keep one that long) is a lot to be stuck with a device you are not happy with.
I understand VZW's decision to team up with Best Buy, Wirefly, Amazon, etc... They almost have to if they want to compete with the other names out there. Kinda one of those, everybody else is doing it, things. I just think it's the slow decay of local community business. I'm a big internet junkie, but all of my new purchases of goods comes solely through my local economy, so as long as VZW still has a store in my town, continues to pay their taxes into my community, and employs 30-40 people, I will continue to purchase items from that store.