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Except that now you've paid almost full price for an iPhone and you're also locked into a 3-year contract.
If you're going to replace it in 5 months and you have to have an iPhone, why not buy an 8GB 3GS for $550, use it for 5 months, and then get an iPhone 5 on contract? Or better yet, get a used 3GS off eBay for about $400. Is there anything about the iPhone 4 that you have to have over the 3GS?
When you get your iPhone 5, you could probably sell a good condition 3GS for $150-200.
Alternatively, if you can live with a different phone until June, you could do even better. The Bell LG Optimus Chic can be had for $250 off-contract, for example.
If you're going to replace it in 5 months and you have to have an iPhone, why not buy an 8GB 3GS for $550, use it for 5 months, and then get an iPhone 5 on contract? Or better yet, get a used 3GS off eBay for about $400. Is there anything about the iPhone 4 that you have to have over the 3GS?
When you get your iPhone 5, you could probably sell a good condition 3GS for $150-200.
Alternatively, if you can live with a different phone until June, you could do even better. The Bell LG Optimus Chic can be had for $250 off-contract, for example.