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Do I really lose my upgrade eligibility if I return the phone I upgrade to?

Last September I was eligible for an upgrade discount at the end of my two year contract, and I used it to upgrade to the new iPhone. However, after a day of use I knew the iPhone was not for me (turns out I really like Android). I returned the phone promptly, went back to using my old phone, and all that went fine.

The problem now is that my upgrade eligibility did not reset, as I thought it would when I returned the iPhone. Even though, for all intents and purposes, I did not upgrade, my eligible date is now based on the iPhone purchase date (which, again, I returned the next day). Does this sound like the right policy: You lose your upgrade eligibility if you return your upgrade phone?

That doesn't make any sense to me, nor is it mentioned in Verizon's return policy:

Any thoughts or help?

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