Are they referring to existing AT&T customers who already own an Iphone, or all existing customers? I ask because engadget had a post claiming this:

Unofficially, we've been slipped information that AT&T's typical upgrade eligibility rules apply when signing the new contract, and there will be a separate (read: higher) pricing scheme for "non-qualified upgrades." These prices have not yet been set.

http://www.engadgetmobile.com/2008/06/10/the-iphone-3g-on-atandt-we-ask-the-burning-questions/

This seems to be consistent with statements from both companies confirming that the Iphone will now be treated as a regular phone by AT&T (i.e., it's subsidized), and AT&T applies its upgrade rules to all other smartphones.

As far as the plan goes, I don't mind the data plan price. I just wish that you could have a less expensive voice/text plan to avoid a monthly cost of $80 (before taxes and other surcharges).

EDIT: This is why I should never post from work. Pretend the first two paragraphs never happened.