it says on there for new customers and people eligible for upgrades! honestly i can wait another year or so til i get a new one. what i might do now is just go in and get a new 3g, cause mine has a big of a light leak, but thats it!
Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB). Visit www.wireless.att.com for eligibility information.
so if you bought a 3G, you aren't going to get it for $199 and they just made your resell value 50 bucks.