I bought my wife's and my new iPhone 4's about six weeks ago and we got refurbs. It was pretty sweet getting the 32gb models for the price of what the 16gb would have been new. Our phones both look great. From what I remember a refurb 16gb was only $99. We would have strongly considered going this route, but they were out of stock at the time we purchased.
The only thing about buying refurb is that they only guarantee a 90 day warranty. However, Apple will cover the phone based on it's original time of purchase by the original buyer. When we ran our serial numbers my phone has warranty coverage until August and hers has coverage until October or November. We're not getting a full year, but we can always buy Apple Care if we're really concerned about that.
I think when it comes to Apple products refurb should always be strongly considered.
where did you find apple refurbs of iphones? its not on the normal refurb page...