On: Want an iPhone 3G S? Already have an iPhone 3G? Be prepared to pay $700

No it's not the case actually. I upgraded from my 2G to 3G without any penalty. With the iPhone, which is what we're talking about here, that's not the way it works or should work. Also keep in mind, the 3G[s] isn't a huge leap.

The 2G to 3G was without penalty because the 2G devices were unsubsidized.

You can say that again, I paid a pretty penny for my 2G which is why I ignored the 3G. Glad I waited... 2G was good to me though, never had a drop call.

Very valid point. It's still pretty screwy to play: don't subsidize, subsidize, don't subsidize.

I don't understand. The phone costs what it costs. Would you rather AT&T didn't subsidize? I'm happy that they did for me.

The party that seems to actually be dishonest here is Apple, since the true price of their phone is nothing like what they put in the Keynote slide.