AT&T - No initial phone discount

I purchased a phone from an AT&T corporate store in March 2008. Since I didn't like the handset I purchased (Palm Centro), I returned it and didn't get another handset. The store representative said that I would be able purchase another phone at the initial discount anytime a phone I wanted was available. Now that I am looking to purchase a phone, both Supervisor Raul Montes User ID: RX371G and cancellation department representative Mike Sillman (refused to give user ID) advised that I wouldn't be able to purchase a phone at the initial discount price. Mike Sillman (cancellation dept) also mentioned that if I wanted to cancel my line or port my number to another carrier, a cancellation fee would apply. This is despite the fact that the initial phone discount was never received AND multiple representatives advised me that I would be able to get a new phone with new contract pricing WITHOUT extending my contract. They instead offered an upgrade option extending my contract for an additional two years.