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)
I'm hoping that this will exclude those who, like me, paid full (unsubsidized) price for their first-gen iPhones and did not upgrade to a 3G. If they're going to charge me $699, I'll wait till contract expiry next Feb...
I am thinking... for some, it might be cheaper to break the contract and then go back under a new 2 year contract with the associated iphone rate plan. Not sure how you would do that expect by porting the number to another party then porting it back (if you care about keeping the number that is).