Apple just announced there new iPhone 3G. There's an 8 GB version for $199 and a 16 GB version for $299. $199 sounds like a pretty fair price. You get GPS and access to the app store. I would definitely consider getting one when I upgrade my phone, even though you have sign up with AT&T. I don't much care for Verizon anway.
Sidenote, does anybody else use google reader. I just discovered it and think it's pretty cool. Saves me a lot of time checking websites.