This rumor has no substance. Numerous ATT support people have told many people on this thread that EVERYONE can get the iphone for $199/$299.
That leaves two possibilities.
1. ) Gizmodo is on crack and just wanted to get a lot of Diggs when they broke this story.
2. ) ATT Reps are confused.
I pick item 1. Gizmodo based this story on links to policies on Wirefly and Bestbuy.com describing upgrade eligibility. The iPhone is different, it always has been and will continue to be based on what many people have reported after speaking with ATT reps. Just review this thread and the
thread at Gizmodo.
I think Macrumors and Gizmodo need to both post an update saying this is all unsubstantiated and based on updates to policies on Wirefly and Bestbuy.com eligibility. I understand this site is MacRUMORs, but I think Macrumors has been responsible in the past with its Rumor Report Cards. I would think Macrumors would be willing to update the hogwash on the article for this story to mention how many people have contacted ATT and discredited the original story.