So apparently AT&T, out of the goodness of their hearts or something, has announced that you will be able to buy a 3G iPhone without a 2 year contract, provided you at least agree to a month to month plan.

Which seems like a reasonable compromise until you hear how much they want for an unsubsidized iPhone 3G - $599 for the 8GB version, or $699 for the 16GB version.

That's not just greedy, it's dumb.

See, as we've previously explained, you can already get a commitment free iPhone 3G in a much cheaper way - just break the contract after you sign it with AT&T. There will be a 36 dollar activation fee and a $175 early terminaton penalty, but add that up and it stil only comes to $411.

And $411 is a hell of a lot cheaper for a contract free iPhone 3G than $599.

Via