Game Changed?
If an 8GB iPod Touch (equivalent to an iPhone 3G in everything but having-a-phone) is now $199 retail, and if you could soon use Internet calling apps on it (jailbroken or not) as long as you could grab WiFi, then… why even get an iPhone? You’re under contract, AT&T pumps $100 out of you every month for the privilege (few people get the $70 bare minimum plan + tax), their network sucks, and if you lose the thing you’re either out $400+ or you’re stuck on some regressive-tech replacement until your next contract renewal. All-around bad deal! Buy an iPod Touch, get 99% of the benefit of the iPhone platform, and get a prepaid clamshell phone for actual mobile-POTS service. I think this would save you… $800 a year.
