First off everyone needs to go read this link from AT&T. It talks about what are the requirements for getting a subsidy on a new phone.
Second, this is why phones shouldn't be subsidized. Because the Apple faithful feel that they are super special and should be able to break cycle and get upgrades whenever Apple comes out with new hardware. AT&T should flip all you the bird, as there is nowhere else for you to go to get the iPhone. To all those that assume it will be on Verizon in 2010, good luck with that. Even if Verizon is going to use LTE the phone will still need CDMA fallback for when it is not in LTE service area.
Second, this is why phones shouldn't be subsidized. Because the Apple faithful feel that they are super special and should be able to break cycle and get upgrades whenever Apple comes out with new hardware. AT&T should flip all you the bird, as there is nowhere else for you to go to get the iPhone. To all those that assume it will be on Verizon in 2010, good luck with that. Even if Verizon is going to use LTE the phone will still need CDMA fallback for when it is not in LTE service area.