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It's not like I just throw my old phone in the bin! My missus, I think her brothers and my Mum have all had my old phones for a time. Eg. I went from Galaxy Nexus to N5, skipping the N4 which wasn't good enough and I moved away from Nexus when the N6 was too big and the Pixels too expensive (and not waterproof like the Sony).
It's also not like I didn't have reasons to update. You won't see my in a queue gagging for the newest release iTwat (see N4, N6 skipping) but if a new phone does something I want (waterproof) then I will get it and if a phone breaks (Sony, N5) I will buy a new one while the other is being repaired (case in point my XCover and another Z3 Compact)
Not having the money to spend on a SIM-free is fair enough, but I do and I don't like being tied to 12/24 month contracts when my phone rotation history indicates much more random handset swaps.
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hippy
24 months is pretty standard these days, and upgrading sooner is frankly a massive waste of a perfectly good device; I would have happily kept my S6 for years longer had it not gone for a swim with the little brown fishes...
Even at £5/month, it's over £600 with the handset at its current price over the same period.
SIM-free deals also assume you have £500 to drop on something, which I don't.