[jyl]

ATT subsidized your iPhone 3G by >$200 when you got it. So naturally they don't want to be subsidizing you by another >$200 just a few months later.

If having the very latest iPhone is a big deal to you, sell your iPhone 3G (might get $200?), pay full retail for a iPhone 3G S ($600?), difference is $400, a subsidized iPhone 3G S would cost you $200 anyway, so you're paying $200 extra. If it is worth it to you. I don't think the hardware changes in the 3G S are worth that much, personally.

Can you merely pay $100 early termination fee and keep your existing iPhone 3G? I'm doubtful, though have never tried.

Palm Pre looks like a potentially great device. We got one to test out, it is sweet indeed.