I understand the economics behind AT&T not offering an at par upgrade price for existing iPhone users, but there may be some problems for them with that stance. TechCrunch reports:

But here's why it's really a very questionable upgrade: Because Apple is at some point going to move the iPhone beyond the AT&T network. That move could happen as soon as next year. If you buy this iPhone 3G S now, you'll be locked in for two more years (or have to pay the large cancellation fee). Now, AT&T is trying to negotiate with Apple to extend its exclusive deal through 2011, in which case the move to the iPhone 3G S would make some sense. But that has not happened yet, and AT&T is playing in risky waters. If I learned tomorrow that AT&T and Apple were ending their exclusive deal in 2010, there is no way I would upgrade. I'd suck it up and wait for a year.

While I've had no trouble with the AT&T service (read the story for that trail of troubles), there are plenty of people who have - and I think the loyalty is to Apple, not AT&T. They may want to rethink this one.

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