I also have Verizon and have never had any problems. Of course, it's free (for me anyway) so anything is good I suppose...
One of the things to realize about larger coverage networks is that they have different generations of tech running their base stations. There's always going to be a tradeoff between going with the network that has the latest generation system (with all the attendant bugs that entails) versus one that has rock solid performance, but is a generation behind. AT&T tends to lag behind Verizon, but gets more mileage out of what they're using as a result. Which you prefer is up to you.
The reason why the Iphone came out on AT&T only was partly contract deals, but mostly because the initial Iphone was a 2G phone with lots of built in hardware to make it seem like a better phone. They didn't need a 3G network and AT&T was the logical choice in the US to go with. They seem to be sticking with that decision and are upgrading to 3G in sync with AT&T. At least so far...
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