Read that title again, and realize that the iPhone 3G will sell for LESS than the infamous price drop given the original iPhone before the holidays. (Recap: it's started at $599 and was dropped to $399 with early adapters getting an equally infamous $100 Apple Store gift certificate Jobs-a-culpa).
And while the price drop was big news then, the retail price of $199 should be HUGE news today.
At $199, that's HALF the price of the original iPhone at its lowest. It's the SAME price as an 8GB iPod Nano. It's LESS than an iPod Classic, and MUCH LESS than an iPod Touch!