This post to Dave Farber’s IP list sums up nearly all of my feelings on the iPhone pricing issue:
"I find this discussion more than a little appalling.
Nobody forced anyone to buy an iPhone. The hype was immense, and only a little of the hype actually came from Apple. The buyers weren’t buying a phone, they were buying status and the envy of others. Every buyer got the opportunity to show off their new toy, brag. The iPhone provided a high quality narcissistic supply. Now that the price has been sullied and the status is gone you can hear the sound of egos deflating as that brief bubble of exclusivity popped. The dealer cut the price of their junk.
In a Tokyo hostess bar a woman will sit at your table, talk to you, pour your drinks, listen to your problems, and boost your ego. $200 typically buys one evening, two if you scrimp a little. Compared to that the iPhone early adopter premium is a bargain, and no hostess bar gives a discount on future purchases, ever.
Now that the iPhone is no longer a source of narcissistic supply, it can be judged on its own merits.
Ottawa Ontario Canada"
The only thing I would add, as we have previously noted, is that of you buy 1.0 of anything, you are often a sucker or a fool. In the present case, both.