$199 is definitely a great price but that's just one piece of the puzzle. I really doubt that you'll be able to get unlimited 3g access for the same $60 bucks a month (in the US) as iPhone v1.

We also still don't know how much the apps will cost.

Personally the biggest thing that scares me away from an iPhone is AT&T. If the iPhone was available through other providers I'd be much more tempted.

Hopefully this will get Verizon to lower the cost of their data access. My biggest frustration with my N810 is how much it costs me to tether with my phone.