Yes, there are SEVERAL threads in the forums describing the troubles people have had when using Verizon's trade-in program. Ever since I first saw this program, I tried steering people away from it as the value Verizon estimates your trade-in at is WELL below(sometimes even 30%-40%) what you would be able to realize if you were to sell the phone on your own. Additionally, you do not get cash in the process but a gift card to be used towards additional Verizon equipment. I never understood why ANYONE would voluntarily trade their phone in with Verizon instead of selling it on their own.
Recently, I have stopped posting on threads such as yours because it seems to be a useless cause. People STILL use the program and people STILL complain about how well it works no matter how many posts are listed extolling the pitfalls of this program. Hopefully you will get your gift card soon.
That would certainly depend on how much you are willing to shell out at the point of transfer.
First of all, T-Mobile does not "pay" your ETF, but simply reimburses you after you pay them and provide T-Mobile with a copy of the bill showing the ETF.
Second, you must give T-Mobile a working phone as a trade AND purchase a full retail priced phone from T-Mobile.
Lastly, if someone wants to cancel multiple lines with Verizon AND drop a line in the process, the ETF on the dropped line WOULD NOT be eligible for the ETF reimbursement.
Depending on how many lines you are switching, a person COULD end up paying well over $1000 to switch. I certainly am not trying to dissuade anyone from switching, but please LOOK before you LEAP. All too often people don't and end up regretting the decision.
For older phones like that, Verizon cannot resell them and so they will scrap them. With that said, a 5 year old phone goes for close to the same scrap value as a 2 year old phone. That's why only $1.00 seperates the phones.
I would sell it somewhere else, as mentioned above
Good Luck 
