Apple has put the old bait 'n' switch into play. Yes, it is true the new iPhone 3G model is cheaper, but surprise, surprise the monthly service costs are up. ATT will charge regular iPhone users an extra $10 a month, while business users will really get stiffed with a huge monthly fee of $85!
That means that a two-year service contract will actually cost $40 more than the old iPhone for the non-business subscribers. A slight difference sure, especially given the improvements, but nonetheless it's a bit crafty, don't you think?