wow, $199 and $299. I guess the folks who sold their current iphones for $400 and up are looking smart now. Still, I may just keep my gen 1 because it's still serving me very well, and it will only get better with software 2.0 (which looks awesome).
To get those savings, Apple had to cut some corners. I'm waiting to see what the screen quality is like. You may find that the old version is...
1. More scratch resistant
2. Better looking
3. Fare better screen.
All things that are not worth trading for GPS and 3G (which appears not to be that significant an improvement over Edge )