I just bit the bullet and bought an 8GB

iPhone 3G at Best Buy. I was afraid they might charge the full price and have the difference as a rebate (prepaid visa, etc.), but all I was charged was $107 ($99 + tax). An $18 upgrade fee will be on my next AT&T bill, as opposed to the $36 new line activation fee. They offered the $15/month insurance, but I passed.
But everyone can get the AT&T price, not everyone can get the BB price. Not everyone spends over $2,500 a year on over-priced stuff at Best Buy 😉
For the record, I never pay full price at BB... I get a lot of their coupons for 10-12% off and that makes their prices closer to what you might get online, but you can 'get it now' and they often have decent prices on clearance/returned/refurbished items, if you know what to look for. My dad got a new Apple MacBook Air for about $1,100 just before the end of the year (yeah, I know refurbs at Apple is $999 now, but he needed it then, and they were $1349 everywhere else), and that pushed me over the Silver threshold.
Now, to sync my data, media, apps, etc., provision my phone for my own app (
100sounds), and see about selling my original

iPhone 4GB.