This is actually a very valid point. For example, Cricket charges $350 for the KRZR K1M... verizon charges $50 with a 2 year activation.
People are stupid. They'd much rather spend $600 extra over the course of two years than pay $200 upfront.
As for the customer service, that only comes into play if you've actually HAD cricket service. Most people have no idea what cricket's customer service is like.
The other factors working against cricket are pretty simple...
1. Marketing. Cricket doesn't advertise nearly as much, or as effectively as verizon, sprint, T-mobile, or cingular.
2. Perception. People assume cricket's service must suck because they don't have the array of options that other carriers do. We've got a much more limited selection of phones, and we don't have such things as V-cast, mobile TV, nationwide roaming, etc... Most people never use those things, but the availability creates a perception of quality.
3. Options: Those who would use the above mentioned options won't even consider cricket. Until 6 months ago, professionals who travelled had NO reason to come to cricket. It doesn't matter if your phone bill is half as much as verizon's if your phone doesn't work when you need it.
Cricket is gradually overcoming these things, but they need to start marketing in order to make it known what they have to offer.