You forgot Europe?We are approaching the iPod mini stage in the iPhone lifecycle. Cheaper, colorful, not better but still pretty good.
The only problem, at least in the US, is the carriers. It doesn't matter what the phone costs because the subsidy will make it the same price as every other phone. (the actual problem is the customers who put up with it...)
This phone is for China/India/T-Mobile US. And I welcome it.
It's for everywhere except the US. BUT, I think Apple will do two things:
1. Maintain the current price of $199 in the US
2. Terminate the iPhone 4/4S and price the 'cheap' iPhone at $0 or $49.
That'll be two good price points.