A few thoughts:
- Steve said nothing about subsidizing when revealing the new price. US$199 max - end of story (for now). Everything else is speculation at best.
- The wording of the "2 year contract required" seems no different than the initial release; nothing indicates that this is any different than the first time around or will be any harder to bypass. Even Steve is publicly aware that iPhones are being unlocked... pretty sure this is the point in his presentation where China got mentioned as a country where the iPhone was "available"... Anywho, it also "requires" an internet connection, iTunes 7.7, and a Apple Store account; I suppose everyone in line will have to use one of the store computers to log into their Comcast account, use VPN to access their desktop and bring up the most recent version of iTunes, then log into the Apple store before they'll sell an iPhone? I think a more realistic scenario is: "Here's my debit card", "Thanks, here's your new iPhone and activation instructions. Next!"
- Who's going to buy the iPod Touch for more money? No one - all the students are getting them for free until September! No one else thought it was odd that the education discount included a choice between a $299 8GB Touch and a $199 8GB Nano... right before a rumored WWDC announcement of dropping iPhone prices? Even the underwater basket weaving majors could figure out which is the better deal. I expect they'll be out of stock before the end of July.
- For those that felt the need and had the ability to pay a premium to be on the fashion/technology forefront when the original iPhone came out, I applaud your, well, enthusiasm (not the same as loyalty, by the way). If you are somehow confused or upset that technology gets better and prices go down with lightning speed, feel free to drop by and voice your complaint to my new $150 HD video camera... I'm the guy with the used 325 out front. Pity level=0, humor content=10+!