Amen, Amen, and Amen!
It was inevitable. Welcome to the real world of American cell phone companies Apple, prepare to screw your customers.
Yep. ATT played real nice on plans and pricing with the EDGE phone to win people over. We were on an ancient, out-of-contract but permanently grandfathered -- so long as you didn't change your plan -- T-Mobile plan when we got our iPhone a couple months after release. We wound up paying $30 more, tax and everything, than our eight-year-old T-Mo plans at eight-year-old pricing, for data AND rollover minutes AND unlimited mobile-to-mobile to any ATT customer.
It was a stellar deal. But if you didn't get in then, you're not going to get a good deal; you're going to get flogged. I'd say if you already have an iPhone, because of Apple's interest in building the number one mobile platform, they're going to support original EDGE iPhones with Apps and firmware updates, save hardware issues, really only GPS functions, 3G just being faster on the mobile data WiFi being the same, for a long, long time into the future. Getting people to bump up to a new iPod by shutting out feature updates and apps is one thing, but forcing people off the mark to upgrade by withholding doable features on a mobile phone, well, you set them looking at deals where they think they can get what is comparable in features to an iPhone for $99 subsidized, on a better special promotion rate plan, and they'll do that.
So if you have an EDGE iPhone, I'd stay out your contract and then just let it ride month-to-month. They can shaft you if you're off contract, but they seldom do try to force you to the newer, sorrier contract plans, because, once again, then you start shopping other carriers. You'll like get the same general deal off-contract with your EDGE iPhone as on-contract, for as long as you care to use it. Maybe tiny rate increases, for like over-limit text messages, but nothing wild.
If you don't have an iPhone, but were waiting for the 3G, you really, really need to shop around. The 3G iPhone is going to be a very expensive proposition compared to paying unsubsidized cash for an EDGE iPhone on the launch plan rates and features.
It's all how you want to spend your spare dollar. The only thing holding me back from upgrading to a $199 3G iPhone was that awful plastic back. Until I saw the new plan structure... I have a lot better uses for an extra $1,400 this year than a new, somewhat faster (nothing compared to WiFi mode) iPhone.