I'm one of the long time AT&T customers who never got a 2G iPhone. I wanted to wait until Apple introduced an iPhone with -3G -32GB (real iPod - not a small capacity ipod lite) -true PUSH email -downloadable applications I waited a year for a new iPhone, and now the new one has 3 of my 4 wishes. But with all the confusion over price/eligibility (I'm not eligible until October) and AT&T apparently wanting to double dip by selling non-subsidized phones requiring a subsidized-type 2 year contract, I feel their lack of a clear sales policy shows fundamental disorganization and a general disregard of current customers. I don't mind signing another 2 year contract - I don't plan on leaving AT&T anyway - but I don't want to be locked into a non-subsidized 16gb iPhone for 2 years if a 32gb model comes out in the next year. My solution: Buy a used 2G phone via CL or ebay. They abound for around $200-$250. After July 11th there will be a greater supply of used phones, so maybe they will cost even less. I will activate the iPhone, which should not affect my Oct '08 upgrade eligibility. I will then knock my plan down from 900 minutes to 450 per month. Even with losing most of my rollover minutes I will still have more minutes per month than I will ever use. My current IRU discount is cheaper than the 2G's non-discounted plan - that's why I'd reduce the minutes per month. With the 2.0 software, I will still get 2 of my 4 iPhone wishes (yes, I already have .mac). When a 32GB model is released, I can just buy that at the subsidized price with a new contract. Hopefully the used 2G iPhone will still be worth $200 or so when I re-sell it. The irony is that in my case, AT&T's zeal to nickel and dime their current customers will end up costing them money. I will owe them less $$ per month on a lower rate plan, and if they are still revenue sharing the 2G plans with Apple, that is a further reduction. And I will eventually end up with a subsidized iPhone on a new 2 year contract - a time period I will already have been their customer anyway.