What's wrong with that? If they are giving you 500+$ worth of stuff for you to sign on to a contract, I'm sure they are going to protect themselves from people

What's wrong with that? If they are giving you 500+$ worth of stuff for you to sign on to a contract, I'm sure they are going to protect themselves from people just signing on to get free stuff and immediately canceling. If you sign a 2-3 year contract and want to break it before it ends, there will always be some kind of penalty.