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I just (a month ago) bought a 3G phone when I dropped and destroyed my original iPhone. I was eligible for the upgrade price, paid it and went on my way. No way I'm paying full pop, or even the discounted price for the new phone. I want a few of the 3.0 features (that will work fine on my 3G phone), and don't need the video or compass.
In fact I thought about just going back to a plain old phone when I smashed the iPhone, but the reality is that I end up being able to do a lot of work via email on the iPhone, and that alone makes it worth the extra money. The apps...don't really care. ymmv though.
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