With a $99 iPhone, will anyone buy the new iPhone 3GS?

Apple just announced it's new iPhone 3GS at WWDC, but it also announced it will be selling the the older 8GB iPhone 3G for just $99. The newer versions will sell for $199 for 16GB and $299 for 32GB. With the already pricey AT&T plans, is it worth investing a whopping $300 on the new iPhone when you can get the older version for a fraction of the price?

The 3GS has the same body as the 3G, but with greener materials, including arsenic-free glass, BDF-free, and a mercury-free LCD.

It's faster than the 3G, hence the "S" in 3GS (the "S" stands for speed). It can launch messages 2.1 times faster, and can load the New York Times in Safari 2.9 times faster. It also has an increased battery life.

The 3-megapixel camera has new, snazzy features, like auto focus, macro, auto exposure, and low-light options. You can also take 30fps VGA video with audio with the new version.

The 3GS also has a compass app, which is integrated into the new maps using the magnetometer. It also can be controlled by your voice. You can tell it to call a certain person in your phone book, which is nothing really new. But you can also tell it to play a certain song or artist from your iTunes, which is pretty cool.

Current iPhone owners can update to the new 3.0 OS for free, but iPod touch users will have to pay $9.99 for the update. The $99 iPhone is available today, but you'll have to wait until June 19 for the 3GS.

Are you wowed enough by the above improvements to pay $200 or $300 for the new iPhone 3GS, or will you settle for the $99 version? Let us know in the comments below.

Check out the full specs here.