Mike,
You're right. In theory, with GSM you can use any GSM phone with any GSM carrier by just swapping the SIM chip.
I've never had the balls to try it. I'm guessing the phone aspects would work just fine. My hunch is the data and extended features might be flakey though as the back end off board systems aren't going to know that handset more than likely. The UI on the phone is also usually customized to have certain keys hardcoded to do certain functions with the provider, you'd lose that.
And probably the most scary part is you're on your own if you need service.
You'll also get a better deal on the hardware buying it from the provider as they'll typically knock a good chunk off the price of the handset in exchange for signing or extending a contract. Same thing goes for service, if you have a problem with the handset, and it's one the carrier gave you, they have incentive to keep you happy so you'll stay with them and keep sending them that check every month.
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