If you lose your iPhone, now it will only cost you $399 to replace it instead of $599! 
Personally, I wonder if the drastic price reduction might be a prelude to an all-new iPhone (3G instead of EDGE)? Clear out remaining inventory for a holiday announcement!
Mark

Personally, I wonder if the drastic price reduction might be a prelude to an all-new iPhone (3G instead of EDGE)? Clear out remaining inventory for a holiday announcement!

Mark