First of all,
You are nuts to think the price would actually drop! That is CRAZY! Even though the price on flash memory has dropped, prices will either stay or most likely rise, even with a RECESSION! Second, any iPhone will never be slimmer than the iPod Touch, since phone capabilities are almost impossible to get that thin, and be expected to function as flawlessly as Apple demands, no chance on either of these matters, SORRY!

Oh, and AT&T will likely raise data connection prices for 3G, because running EDGE versus 3G bandwidths is quite a bit more expensive!