Tell them to wait.
I had the 1st gen Q from VZW and got out of the termination fee a few months back due to the increase of text messaging from 10 cents per to 15 cents (I didn't have a text package, so this affected me.) Basically, I told them that this was a serious, and adverse problem for me, and according to my customer agreement, I could therefore cancel without penalty of a termination fee.
I've seen this before, where every so often the fine print on your bill will give you an out. The situation I am talking about can be found on your (or at least my) February '07 bill.
You also gotta weigh out when their contracts will expire, however. It might be best to drop the rate plan down and let the contract run out. Sure they can't keep their same number, but hey, they're getting an iPhone.
Of course, and now I'm just rambling, I had the choice between the iPhone and the Q9h, and I'm writing on this forum, so... It was a no-brainer.