I know it’s “only” $200, but I’d still have to go to the store to get it, AND the service plan costs more ($10 more) per month. If I didn’t have an iPhone already I’d run out and get the 3G right now. But since I already have one... I’m in no hurry. The old one, once upgraded to the 2.0 software, is just as capable.
Advice: watch for used first-edition iPhones on eBay etc. I would guess that you could get one for $100.