My understanding is that Verizon is required by the FCC to allow any device on their network, as a result of Google hijinks in 2008.

That said, enforcing it is another matter.

http://buzzmachine.com/2013/09/17/verizon-caught-red-handed/

Unless something has changed, the article you linked to is basically the end of the story. Despite promises, Verizon has not moved to permit the Nexus 7 on their network, and there is no easy/useful enforcement mechanism to make them do so. The provisions are effectively toothless.

Sadly, that's my understanding, yes :/

If you read forum reports, it seems people are activating it by using IMEI numbers from other tablets and whatnot, but Verizon is not making it easy, or (IMO) living up to their contractual obligations.

I really need to ditch Verizon when my contract is up... Does anyone have network suggestions for the Bay Area? (Palo Alto, Mountain View type areas)

TMobile has some really good plans. They are trying a lot of new things. An unlimited plan from them with a Nexus 5 is what I use and I'm very happy with it.

How is their coverage in SF?

looks pretty good here: http://www.rootmetrics.com/check-coverage/

I've heard Tmo is good in cities from friends that use it, it's the non-city areas that you'd have to watch out for.

good (nob hill here) bit slow during peak hours (HSDPA/LTE?) and degrades very fast if you exit the city going toward socal.

Thanks for this - that sucks hard, I'm sorely tempted to switch off of Verizon. The only thing that keeps me on there is that I'm on a $40/month legacy family plan that still has unlimited data.