To upgrade, or not to upgrade

It's been a year since the original iPhone was released, so many of us were expecting the new iPhone to at least incorporate features that are currently available on even the most basic phones, like the ability to shoot video, MMS, extra storage (is 32GB too much to ask for?), and Bluetooth audio. Unfortunately, none of these were addressed in the latest iPhone, which touts built-in GPS capabilities, 3G, and black and white back covers.

We've been clamoring for 3G for a long time, but are we willing to pay the price? Those of us who currently own an iPhone will want to sell it before upgrading to a faster iPhone 3G, but who's going to buy them? Auction sites are expected to be saturated with first-generation iPhones in the coming weeks, and only those smart enough to sell theirs now are likely to get some money back.

On the bright side, there's still a great demand for unlocked phones out there, with some still selling for over $300. But once the new iPhone 3G hits the market, you'll be lucky to get $150 for the old model.

The new iPhone's $199 price tag (for 8GB) looks good in comparison to the first model, but is it really? According to The New York Times, the low cost of the iPhone doesn't mean you'll end up paying less over the two years you're tied into a contract. As some of you already know, AT&T has raised the pricing of its 3G data plans, which will now cost $30 per month, and $45 per month for business users.

That's a $10-per-month increase, or an extra $240 over the life of the contract that current users don't have to pay. So at first it may appear that you're saving yourself $200, but in the long run you're paying more.

Show of hands (or comments): How many of you will be upgrading? Why or why not?

Related:
How the half-price iPhone 3G actually costs you more
What's there, and what's missing
iPhone 3G questions and answers
Killer applications coming to iPhone