Well well well...
Fantastic price -- SonyEricsson and Nokia will be holding crisis meetings all night.
Still... as someone who never had the opportunity to buy the 1st gen iPhone I'm a little miffed about the design changes. The metal back was beautiful, the plastic ehhh not so much -- and I'm sure Apple has stayed true to tradition and carefully selected a material that will scratch as soon as you look at it funny. Also the nice black rubber details on the bottom appear to have disappeared in favor of, well, nothing. Essentially it just looks like a morbidly obese iPod Touch now. Plain and unsophisticated.
And didn't the old iPhone come with a dock? This new one just has a crummy cable, like an iPod. The dock is an optional accessory.
Oh well, who am I kidding... I'm getting two 16 GB iPhones on July 11.
And the oblique rear of the iphone 3G (although I do assume that with time the iphone will acquire a somewhat more respectable form, much like the iBook did - from its earliest iteration to MacBooks) and the new name of .Mac service - this all is obviously intended to attract masses, people of no distinction in taste.
Well, if you want to make an omelet... Apple can't have the cake and eat it. They can't pull off a massive increase in market share and remain some sort of Rolls-Royce for a snooty elite at the same time. In the end, Apple fans will benefit anyway. More sales to the masses means more money into R&D which means cooler products rolled out at a faster pace.
What they're doing right now is declare war on the entire handheld device market. Unless Nokia, Motorola and the others plan on cutting their prices in half overnight, the iPhone will put a considerable dent in their sales. If this succeeds, Apple will go from having one foot in the door to owning the house, and once they're in that position they can expand their iPhone product line with exclusive models for people with taste.