Keeps Apple on their toes and lets them realize that price DOES matter. Having said that, they'll clean up with iPhone 3.0.
I agree, introduce the pre then suddenly apple acknowledges the phone is more than capable to do such things as MMS, video recording and other things RIM and lesser cell phones can currently do. But yet the jailbroken community seems to have figured out a few more things ahead of apple. Wonder what the JB community reported for their last quarter