"When the 3G iPhone is introduced this summer, AT&T, the exclusive U.S. iPhone sales partner with Apple, will cut the price by as much as $200, according to a person familiar with the strategy. AT&T is preparing to subsidize $200 of the cost of a new iPhone, bringing the price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with price tags widely expected to be $399 and $499. AT&T and Apple declined to comment."
I still think the iPhone is a sucker deal at this point. They could give them away for free and it would still be a ripoff, given the exorbitant prices they charge for the data plans. But hopefully now you'll get ripped off on the payment plan, and this time you'll at least get 3G with it.