to be honest i think ATT screwed up big time, i understand the motivation, they didn't want to piss off 1st gen owners and early adopters by making them pay full price for a phone, because this might discourage future sales of new products, so they decided to give them the same price break as new subscribers. the problem is the execution. instead of doing all these exceptions to their upgrade eligibility policy they should have simply left that policy alone, and instead just give current 1st gen subscribers a rebate or a voucher with the discount amount on it.
so launch day scenario for 1st gen owner
1. go to att/apple store
2. pay normal price like all other ineligible users
3. receive rebate voucher
4. go home fill out the rebate and send in the Proof of Purchase from both boxes, get your rebate in the mail
i know it would suck to have to wait to get it, but i think it would eliminate a lot of the complaining confusion people are having because of all the exceptions to the rule that ATT is throwing out there
simple