Who said I accept the cost is $560? I said they charge you $560. Don't like the price? Don't pay it.
Must trash your phone? Don't even own it? That's just stupid. I might switch to another carrier, but I could still sell the phone, so don't go screaming the sky is falling.
Net neutrality has nothing to do with wireless providers locking down phones. I don't like it either, but don't confuse the issue.
I'm assuming by open market you meant free market. I hate to break it to you, but this is the free market at work. The carriers have ETFs and locked handsets because consumers by and large put up with it.
None of this is to say that these companies don't do some pretty sleazy things. For example, having ETFs that didn't prorate was dirty for sure, but if you don't like how Verizon is doing business then go with a company like Cricket that doesn't require contracts and will let you unlock your phone if you want to leave them. You do have choices.