they have GOT to release a 12 or 16 gig iPhone for 500 sometime in the next few months right? I mean, bitching aside, they know people will pay 600 for an 8 Gig, they will pay 500 for a 12Gig. They will release this in the next 6 months to a year for 500 bucks, bank on it! And they will probably call this "version 2" to get the people who "dont buy 1st gen stuff." Now that the new iPods are out, they have a pricing hole at 500 bucks, with the iphone price drop. I am not condoning it, I just think it's what they will do within the next year.