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Yep, Thurott is an idiot. Just ignore him. It is pretty safe to ignore "fanbois" of all persuasions, and to smirk at their blindness to reality.
On pricing, my understanding is:
$199-$299: 18+ month (qualified) upgrade price / new customer price
$399-$499: < 18-month (early) upgrade price w/ new 2 year contract
$599-$699: Price with no contract (no concept of an "upgrade" without contract)
I think there was some initial misunderstanding due to poor wording sent out in AT&T's 3GS announcement, but I'm pretty sure that is the policy. The only question is at what point the early upgrade price goes into effect (i.e., you can't buy one at $399, sign a new contract, and come back the next day to get another at $399 just to extend your contract by a day). I'm guessing 6 months, but the only thing that is certain is that it is less than a year.
Thanks for the info on the DSP + Voice Control. I don't buy it 100%, but at least it is a valid excuse. The reality is that Apple is much better than most at upgrading functionality for existing devices in a timely manner. Looks like Palm will have the same basic policy, which is good. Having to wait endlessly for carrier and OEM testing of inane upgrades has been a major problem for years. It is most definitely one of the advantages that Apple/RIM/Palm have over the competition, especially Windows Mobile.
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