Yet, Apple has decided to keep it on the product line and offer it for free with a two year contract (AT&T only). Although we haven't seen the thing running iOS 5, you can bet that it isn't pretty. Think about it- the iPhone 3GS is approaching three years old next spring and it's running the latest software meant for high-end processors and duel-core chips.
Although the product is free that doesn't mean its a good deal. In fact, it's anything but. You'd be buying a product that's obsolete and will be killed off the market in only a few months. And you'd be stuck with the thing until your next upgrade- which can span anywhere from a year to the end of your two year contract.
In fact, if I were to quote the direct statistics that Gizmodo has done for me, this is exactly the amount(s) you would pay anyhow.
Look, you're very likely going to be paying ~100 bucks a month for 2-years if you buy an iPhone (voice plan, data plan, taxes, etc), that's already around $2400 for the lifetime of the contract. Why would you skimp out on 200 more dollars spread over two years? Think long term here, it's only $8.33 a month/$2 a week/$0.27 a day for the iPhone 4S ($200/24-months). A quarter a day! If you're already spending 2 grand on an iPhone plan, you can afford a quarter a day.
You may argue the price difference is such a great deal. Well look here buddy- it simply isn't. Just look above. There's proof that is isn't. And if you're going for a smartphone you're also buying a data plan. Which means you can afford something over that price of free. And come on- the difference is 100 bucks for last years best iPhone or 200 for this years model- which is arguably a super computer in your pocket.
So please, pretty please- don't waste your money. I wouldn't wish this thing on my worst enemy. Maybe Osama Bin Laden. But nobody else. This is not a device where you save- you lose money. Make the right decision and step up to the iPhone 4 or 4S. You won't be disappointed immediately afterwards, trust us.