Do people actually buy the factory unlocked iPhones?

I'm thinking of just buying the iPhone 5 factory unlocked when it comes out but wouldn't it just be cheaper to buy it from a carrier with a contract then deactivate it when you get it and pay the early termination fee and whatever fees associated with it then unlock it using some kind of third party software? For example, I'm using my jailbroken iPhone 4s from Sprint on t-mobile with help from a gevey sim. Should I do the same with an iPhone 5 when more unlocks come available or should I buy the factory unlocked iPhone 5 when it is announced?

Added (1). My iPhone 5 from Verizon is not unlocked.

It's not always cheaper to get a contract phone and cancel it. Factory unlocked is also a lot less hassle.

Honestly, I don't see a reason to upgrade to the Phone5 until your iPhone 4s stops working. The other thing you're not getting is that a factory unlocked phone doesn't have it's warranty voided like unlocking the phone yourself does. I wouldn't buy an iPhone to begin with but I can see the value of a factory-unlocked phone. I'd like to see the Android makers do the same thing.

Ok, that is too much of a hassle cancelling and paying the fee. It would be less than buying it factory unlocked, but then there's the arguing with your carrier etc.
I suggest just going to www.apple.com.au and buying the iPhone 5 unlocked starting at $799.

After recently going through the hassle of unlocking cell-phones for new service, I would definitely just buy the factory unlocked. If you are looking for a great mobile service provider for your unlocked phone, check out this price comparison chart… Hope this helps!