Last week came the sneak peek at internal AT&T memos meant to coach employees on the sale of unsubsidized iPhones. Today, there's news that Apple has begun selling no-contract iPhones at their retail stores. You can grab an 8GB iPhone 3G for $599 or a 16GB model for $699, take it home and do what you will. Unlike restrictions set up by AT&T, Apple Store customers may purchase as many unsubsidized phones as they please.
With WWDC and the release of iPhone OS 3.0 both scheduled for June, it looks like Apple might be clearing house for something new. Perhaps the current model will drop in price and become the entry-level iPhone to make room for the rumored 2009 model.
In any case, go and pick up a contract-free iPhone directly from Apple, if that's your thing.