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I'm with BBB on this one. His numbers are right on. Your looking at about $828 US for a full year contract at $69/month. It only costs ATT $8.33 a month to subsidize $200 over a 2 year contract. Easy money for them. They know if you switch, you will probably be a long term customer beyond even that, and buy iPhone version 03, and so on. That is a smart financial move for ATT. It shouldn't affect the iPods normal cost.
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Dual 2 GHz G5; 20" ACD; MBP 15"- 2.5GHz-4Gb mem-250 Gb HD-512MB Video; iPhones 2G/3G; 40 Gb iPod; Shuffle
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