Engadget iPhone 3GS Review - A software upgrade isn't the only thing in the works as the third generation iPhone is now available. The new 3GS has some new features that might make it worth signing over your soul for two more years with crappy AT&T service and unreliability. Overall the phone is a good purchase with greater speed and lots of bells and whistles that the regular 3G doesn't have like better camera, video recording, compass (great if use maps a lot), better smudge proof coating on glass, voice control. If you’re getting an iPhone for the first time, go ahead and pay the extra $100 for a 3GS, if you’re thinking of upgrading, well that is harder decision to make.
Gizmodo 3GS Review - Difference website, same product. A bit more glowing review to help in your decision.
AT&T Relaxes iPhone 3GS Subsidy Plans - Thanks to customer outcry (and a chance to sign people up for two more years), the company is offering early iPhone 3G buyers who bought that phone in the summer last year a chance to get the 3GS at $199 (16GB) or $299 (32GB), assuming you qualify (using whatever criteria AT&T feels like). Otherwise it’s either wait until the contract expires or pay $100 or more (again depending). For now I am going to take a wait and see approach.

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