What about "pay as you go" phone where you just buy minutes...they sell those at every Wal-Mart and 7/11 in the nation. Doesn't look illegal to me...

I don't know how this is handled in "other parts of the world" or even other parts of europe, but in germany you are required to identify yourself with a legal document if you want to buy a prepaid ("pay as you go") SIM card. You dont have to show your documents when you recharge your card, but still your data is saved with the provider at the moment you buy the initial card and/or phone.