Remember, they're throwing in AppleCare+, which covers accidental damage.
The regular AppleCare warranty that comes with every iPhone does not cover accidental damage.
I know some people still won't find any value in that, but with Apple letting you upgrade at 12/24 payments, their monthly payment w/ AppleCare+ included in it is still a few bucks cheaper per month than ATT's Next plan that lets you upgrade yearly (because ATT spreads the payments over 20 months, not 24, which makes the monthly payment higher, without any warranty included).
For people on ATT's Next program that allows yearly upgrades, they're going to save money on Apple's program, and get AppleCare+.