yeah apple already addressed this issue with a firmware upgrade. I remember everyone making a big deal about this when it first came up. However, the screens are the same. And as someone said before, it makes no sense for apple to produce two different quality same sized screens to try and make something cheaper. It's more efficient to use the same screens for 2 products.
On another topic how can people say Apple switching to a plastic back is a step back in quality? If anything it's a step UP in quality for mere fact of reception quality ALONE.
I think people don't understand that both apple and att are both taking an initial hit in profits (some reports say att is taking the biggest hit by subsidizing the cost of the iphone and wont see a profit from it till 2010). The point is to get more users to buy the product.
Cost of components from a year ago will obviously be cheaper now, and if apple is cutting costs anywhere then it's obvious that they're cutting it in pack ins with the iphone..smaller power plug lack and lack of dock.
None of this is new this is how the ipod price was reduced. They switch out included docks, sourcing their clickwheels internally rather than externally through synaptics....and there's already evidence of the iphone going that route as well.
Seriously people...take a moment and just think rationally