I'm pretty sure Apple has a lot of iPhone 3Gs still in their warehouses that they want to get rid of. So they don't announce the 3G S's hardware specs during the conference to mislead people into thinking the only major differences between the 3G and 3G S was 8GB of space and a better camera. My friend almost bought an iPhone 3G thinking that the only difference was the 8GB of space and a slightly better camera, and not realizing all the hardware improvements. For any extra $100 (the cost of one month of service from ATT on your 2 year contract), you get twice the space, a much newer processor twice as fast, double the ram, a much more powerful GPU, a far better camera and videocamera and lots of extra features. So I posit that anyone who opts for the $99 8GB iPhone was suckered by apple. You spend that much on the phone plan with ATT in just one month! And I'm actually kind of pissed at apple for offering it as an option and not releasing all the info on the 3G S's hardware during the conference itself just to take advantage of people who aren't as techinically knowledgable as we are. My friend almost made the mistake of going for the 8 Gig thinking that the only major difference between the two phones was the camera. If apple just wanted to have a $99 iPhone, they could've just released a 4gb iPhone 3G S for $99, instead of repackaging a much slower last gen device for that price.