...I just feel like usually Apple enters a market at the high end, and then eventually introduces lower end models with fewer features. It was tough to do this with the iPhone.
They can't make a 'nano version' with a smaller screen. It wouldn't really be usable.
I guess the could have kept a base model with edge only, but something tells me (a) ATT didn't want them to (they can charge more for 3G), (b) with the volume of phones they'll be producing, it's probably cheaper to just go with all 3G chipsets across the board, and (c) in many countries around the world, 3G is the base/only network.
This 3G update was something they had to do...more of a necessary update vs. an enhancement.
And perhaps I'm vain, but one of the things that I love about Apple's products is that they feature top-quality hardware design. Design that I have always been willing to pay more money for. With this update I feel like they reduced the quality of iPhone's hardware which is a bit of a disappointment.
Even if we look past the metal back for a moment...have you looked at the plug for this thing? I know, I know..."it's just a plug, who cares?" The plug on an Apple product has always been one of those little details that shows you how they obsess over the finer details like no other electronics company.
But now it feels like they've changed direction. I guess that's why I think (hope?) that they will release a higher end model to slot in above this model...