While nobody knows the complete truth about the new iPhone expected this summer, including myself, I heard some new stuff from a guy in my class that works at AT&T. The first thing he told me was that they're trying very hard to get rid of all iPhones (3G) around May. He said they're pushing really hard (hence the no contract obligation). Second, he said that a lower end model was going to be added to the lineup that had a cheaper data plan (to get everyone using an Apple brand phone). He knew nothing about hardware updates, which makes sense at this time. I'm sure most of you, since this forum is huge, know someone who works at AT&T and this could be total garbage, but everything he told me in the past has been true so far.
The lower end model will be an upgraded iPhone 3G, while the new model will be the new model...ya know....better.
This has been suspect for some time, so whether you made it up or repeated it word for word, its already been posted.