I'm not a conspiracy theorist or anything and this might have been brought up already but do you think Apple will come out with a $600 16gig iPhone? I posted a reply to a couple of threads yesterday that comparing the price point alone of the 8gig ipod touch to the 8gig iPhone (before the price drop) you get a $300 difference. I believe that the iPhone was overpriced to begin with and that the new reduced price of $399 compared against the the ipod touch is now more reasonable because the extra calling feature is not worth more than $100....even when you add in the chrome bezel, chip set, etc. it's still not worth more than maybe $150 (when you spread the cost across so many units). My point is that with the phase out of the 4gig and a price reduction of the 8gig, a 16gig iPhone at $600 is possible considering that the pricing of one would be reasonable. Beside wanting to get the iPhone out to the masses, Apple wants to turn a profit and I think they realized that the hype alone could no longer justify the premium price they initially set, which is why they lowered the price. But now you got your flag ship iPhone set at a low price....and you got an ipod touch (at 16gig max) with similar technology minus the calling feature and some applications...hmmm....time for a new flag ship?