I have to agree strongly with your post, Vonage is like the Mafia/Adolf Hilter of the phone companies, I had a similar experience with them, only when I signed up they allowed you to do it over the web and nowhere was there a clause that stated that early cancellation would result in a penalty, I owned the equipment and what I saw when signning up was pay month to month and no contracts. When I cancelled, they immediately went to try and charge on my credit card on file, lucky for me that I had cancelled it a month prior. I ultimately after being bullied by them with their extorsion e mails agreed to pay their 42.00 cancellation extortion payment.
I will NEVER use Vonage again, instead I actually found a better solution that hopefully will put vonage to and early demise, this compant is called Ooma www.ooma.com, It can be pricey to lay out the money at first for their unit and setup, but their is no monthly charge and only 99.00 a year if you purchase the premier service, and the clarity and customer service runs circles around vonage tenfold. Give them a try, I did and love the fact that I am contributing to vonage and at&t's demise.