Yes, the "price" (read: Outlay) is lowered. However, since you cannot take it out the door without signing a contract (I'm sure the O2 unlocked, carrierfree is pure hope from their part), the actual price will be higher.
This all seems a bit ridiculous. It isn't our right to have cheap, unlocked super-phones. For those of us who have no moral/legal/religious objection to actually taking out a contract with the carrier that apple has partnered with, you get a cheaper (initial outlay) phone with a tariff for exactly the same money and duration that you would have got with the 1st gen.
I've done a bit of looking around and taking into account the subsidy the O2 tariffs are hard to beat. Yes, with the 1st gen it definitely made sense to unlock it and get a cheaper contract, but now you have to find a plan with unlimited data for ~£10 less per month than the equivalent from O2 - not easy. The only assumption I made there was that the pay as you go iPhone will cost around £250.
Of course this is going to vary between countries, but if they've done it here (UK) they can do it in lots of other places too.