Microsd is a nice feature on budget devices and makes up the lack on internal storage, but Samsung think it's OK to do this with premium devices. The Galaxy S4 only has a pathetic 8GB free for applications, you can't install apps on the microsd card without root so a phone with 32GB internal with no sdcard has it's own advantages.
I've had the Galaxy S4 since launch, never had any success with the watchon app, tried it when I get the phone never again since, also never had to replace my battery.
In fact in 10 years of using phones with removable battery covers I've never replaced the battery.
But that remaining 8 Gb free ram is only on the 16Gb version. Get the 32Gb and you'll start with around 23Gb free.
I see the issue the OP has is that he is being charged the same subsidized price for an off contract phone as he would be charged for a new contract phone. That's enough there to inspire me to consider spending $200 for a new phone.
But I am on AT&T, not VZW... so I am not familiar with VZW's most recent purchase options. Does VZW have anything like AT&T's Next program? Or BYOD? And then get a discounted rate (IE, non-subsidized rate) without being on a contract?
For the OP, I would be tempted to wait for the GS5/iP6... whatever is looming on the near horizon for new phones. Of course if VZW has something like AT&T's Next 12, you can update to a new phone in 12 months with no penalty. But you do end up paying for the privilege, one way or another.
IMO, buy and hold beyond the contract period (on AT&T or TMo) and realize significant savings over the subsidized plans. OTOH, if you absolutely must have the latest/greatest phones, you will pay for the privilege.
Personally, I find the GS4 so good that I have no interest in the GS5.. except that I really like the waterproof/dustproof feature (what little I know about the GS5, that is). But if I had an old phone and was looking for something new, I'd have to wait for the GS5 unless it's too far out in the future. It's a PITA to redo all the custom program installs and tweaks, and being basically lazy, I don't care to set it up again... even though I anticipate doing that when I upgrade to KitKat. Sigh.