Wow.  Totally unprecedented (I think), totally crazy.  Silicon Alley Insider is reporting that AT&T is caving to customer demand and will offer *some* current iPhone 3G owners a chance to upgrade to the new iPhone 3G S at the same $199/$299 price point that new customers will be charged.  This is a dramatic change from the original $399/$499 price points that represented a $200 premium for current iPhone 3G owners.

The Business Insider quotes WSJ columnist Walt Mossberg's review of the new 3G S as their source of the news:

Mossberg:AT&T, stung by criticism in recent days, has just decided to offerthe lower, new-customer prices at launch to iPhone 3G owners eligiblefor upgrades at any time up to Sept. 30 of this year, even if they wereoriginally told they'd have to pay the $200 premium.

Note that bit about "elibigle for upgrades at any time up to Sept 30."  I take this to mean that you'll have to have 18 months or less remaining on your current iPhone 3G contract as of 9/30/09 in order to qualify for the lower pricing, but I'm not positive on that. I'm trying to get this confirmed by AT&T, btw.