As tech prices gets lower in iPhones case there are no reason to stop making a model like the current iPhone 3G ... heck i still like my first gen iPhone ..
Remember What Steve Job said at a talk with MSNBC ? He said that he could imagine that everyone would want a iPhone and hinted that in the future they would get into a price range that made "everyone" get an iPhone ..
I think that this is exactly what will happen ... iPhone 3G will become the low end iPhone version that will be very afordable and Apple will do the same to the mobile industry as they did to the MP3 market with there iPod ...
Today if you think of a Mp3 player the first thing that most people think about is an iPod ... I think we are heading to that direction with iPhone ...
As i said .. Steve has already hinted that that is his goal and I think they will get there ...
First af all remember the first gen iPod ... comared to todays iPod its horrible but today iPod is the market leader ... and same will go for iPhone ..
Turning the current iPhone 3G price into a low end price range and continue to make a new version iPhone V3 will be a briliant step and as people have pointed out this will crush outher mobile developers ... they will not be crushed next week but in the looong run they will face the same faith as mp3 players have done ...
another smart move woald also be to make the "low-end" iphone (current iPhone 3G) free from any contract/carrier ... as the exclusive deal with AT&T an outher carriers around the world are runing out the "older" iphone version will not need any specific carrier ... only the latest iPhones will have a exclusive contract with some carrier ... and it will result in that carriers will fight over the right to have the latest iPhone exclusive to there network . This will benifith Apple very very much ...