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I personally think apple dropped the ball on iPhone 3g
How much will I pay for iPhone 3G?
If you are upgrade eligible and your account is in good standing, you will pay $199 for 8GB (black) and $299 for 16GB (black or white). Two-year contract required.
You have the option to purchase an early upgrade priced at $399 for 8GB (black) or $499 for 16GB (black or white). Two-year contract required. Coming soon, AT&T will offer a no-commitment option of $599 for 8GB and $699 for 16GB.
hmmmm... so what's advertised as half the price double the speed is only half true....
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