If you go online to the Apple Store you'll see that they are now selling"refurbished" iPhones for $100 less than new models.
Makes you wonder what type of refurbishing has been done. Were these ever-so-slightly flawed models off the assembly line, like the discounted shirts you see in these outlet malls?
Anyway, who is complaining? Prices cut from $599 to $499 for 8GB, and $499 to $399 for 4GB. You can even buy in to the AppleCare protection plan for $69.